Unisys has closed agreements with F&G Annuities & Life to purchase group annuity contracts totalling approximately $320m using plan assets. Unisys will transfer projected benefit obligations valued at a similar amount related to certain retirees under one of the company’s US 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 $600m of Unisys’ US 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 $228m.