Unisys Transfers Approximately $320 Million of Its U.S. Defined Benefit Pension Obligations to F&G Through the Purchase of Group Annuity Contracts

Rhea-AI Summary

Unisys (NYSE: UIS) has announced the transfer of approximately $320 million of its U.S. defined benefit pension obligations to F&G through group annuity contracts. The transaction affects around 3,150 retirees and beneficiaries and represents the first step in reducing about $600 million of U.S. qualified defined benefit pension plan liabilities through 2026.

The pension benefits transfer will be executed through F&G's insurance subsidiaries and will maintain the same monthly pension benefit payments for affected retirees. The company expects to record a one-time, non-cash, pre-tax settlement charge of approximately $228 million in Q3 2025, with no impact on cash position as the purchase will be made using pension trust assets.

Positive

• Strategic reduction of pension liabilities at favorable pricing
• No changes to retirees' pension benefit amounts or payment schedules
• No impact on company's cash position
• Part of larger strategic plan to reduce $600M in pension liabilities by 2026

Negative

• One-time, non-cash, pre-tax settlement charge of $228 million in Q3 2025

Consistent with Unisys' capital structure and pension strategy, this agreement removes pension liabilities at favorable pricing, further reducing the future cost of full removal of its U.S. pension liabilities

BLUE BELL, Pa., Sept. 29, 2025 /PRNewswire/ -- Unisys (NYSE: UIS) today announced it closed agreements with F&G Annuities & Life, Inc. ("F&G") to purchase group annuity contracts totaling approximately $320 million using plan assets. Unisys will transfer projected benefit obligations valued at a similar amount related to certain retirees under one of the Company's U.S. qualified pension plans to F&G.

As outlined in its July 24, 2025, investor presentation, this latest annuity purchase transaction is the first step in reducing approximately $600 million of U.S. qualified defined benefit pension plan liabilities through the end of 2026.

As part of the transfer, F&G's insurance subsidiaries, Fidelity & Guaranty Life Insurance Company and Fidelity & Guaranty Life Insurance Company of New York, will assume responsibility for pension benefits for approximately 3,150 retirees and beneficiaries with monthly benefits lower than certain thresholds. There will be no changes to the gross amount, timing, or form of the monthly pension benefit payments.

Unisys anticipates this action will result in a third-quarter 2025 one-time, non-cash, pre-tax settlement charge of approximately $228 million. Since the purchase will be made by the pension trust, there will be no impact on the Company's cash position.

About Unisys

Unisys is a global technology solutions company that powers breakthroughs for the world's leading organizations. Our solutions – cloud, data and AI, digital workplace, applications and enterprise computing – help our clients challenge the status quo and unlock their full potential. To learn how we have been helping clients push what's possible for 150 years, visit unisys.com and follow us on LinkedIn.

About F&G 

F&G Annuities & Life, Inc. is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa. For more information, please visit https://www.fglife.com.

Forward-Looking Statements

Any statements contained in this release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Unisys cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond Unisys' ability to control or estimate precisely and are made based upon management's current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon Unisys. There can be no assurance that future developments will be in accordance with management's expectations, assumptions and beliefs or that the effect of future developments on Unisys will be those anticipated by management. Forward-looking statements in this release include the impact on the U.S. pension. Additional information and factors that could cause actual results to differ materially from Unisys' expectations are contained in Unisys' filings with the U.S. Securities and Exchange Commission (SEC), including Unisys' Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC's web site, http://www.sec.gov. Information included in this release is representative as of the date of this release only and while Unisys periodically reassesses material trends and uncertainties affecting Unisys' results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, Unisys does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.

RELEASE NO.: 0929/10019

Unisys and other Unisys products and services mentioned herein, as well as their respective logos, are trademarks or registered trademarks of Unisys Corporation. Any other brand or product referenced herein is acknowledged to be a trademark or registered trademark of its respective holder.

UIS-C

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SOURCE Unisys Corporation

FAQ

How much pension liability is Unisys (UIS) transferring to F&G?

Unisys is transferring approximately $320 million of its U.S. defined benefit pension obligations to F&G through group annuity contracts.

How many Unisys retirees are affected by the pension transfer to F&G?

The pension transfer affects approximately 3,150 retirees and beneficiaries with monthly benefits below certain thresholds.

What is the financial impact of the pension transfer on Unisys (UIS)?

Unisys will record a one-time, non-cash, pre-tax settlement charge of approximately $228 million in Q3 2025, with no impact on the company's cash position.

Will the Unisys pension transfer affect retirees' benefit payments?

No, there will be no changes to the gross amount, timing, or form of the monthly pension benefit payments for affected retirees.

What are Unisys's long-term pension liability reduction goals?

Unisys aims to reduce approximately $600 million of U.S. qualified defined benefit pension plan liabilities through the end of 2026, with this transfer being the first step.