Harte Hanks, Inc., has divested and terminated its obligations related to Qualified Pension Plan I, effective as of August 2024, via a bulk purchase annuity contract with Nationwide.
“We pride ourselves on offering a seamless transition experience for plan participants, helping them feel confident that their pension benefit will continue under our management,” said Paula Cole, vice president of Nationwide’s Pension Risk Transfer business. “We’re excited to welcome these new plan members to Nationwide and look forward to providing extraordinary care to them beyond just this transition.”
In accordance with the commitment letters with Nationwide, Harte Hanks made a one-time $6.1m contribution to Plan I on June 20, 2024, and transferred $71.9m of Plan I assets to Nationwide on June 24, 2024, which absolves Harte Hanks of all payment obligations under Plan I as of August 1, 2024. This annuity purchase completes Harte Hanks prior decision to terminate this pension plan, effective as of June 30, 2023.
Harte Hanks will continue to make payments to plan members through the end of July 2024.
“This plan termination and annuity agreement is a positive step to increasing Harte Hanks cash flow, as our Plan I pension payments will end as of July 31st, 2024, and our related PBGC insurance premium payments will stop shortly thereafter,” commented David Garrison, Chief Financial Officer of Harte Hanks.
“This termination will also further streamline our balance sheet, removing the ongoing obligation related to Plan I. More importantly, we’re ensuring participants will be well taken care of by Nationwide, a company dedicated to extraordinary customer service.”