Allstate says it expects to post a 2013 fourth-quartersettlement charge of between $100 million and $125 million as aresult of a remeasurement of its pension obligations.
|“In conjunction with announced changes to employeepension-benefit plans, the company's third-quarter reports includeda settlement charge of $49 million, after-tax, and indicated thatthe fourth quarter might include an additional settlement charge ofa comparable or greater amount,” the company says in astatement.
|Allstate notes the charges are connected to lump-sum payments toretiring employees, and says, “The value of lump sums paid toemployees electing retirement in 2013 is elevated due tohistorically low interest rates. Voluntary retirement activityduring the fourth quarter was almost five times the typicallevel.”
|Starting in 2014, Allstate says all employees will earn futurepension benefits under a new cash balance formula, which it saysprovides more equitable future benefits to employees.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
