Thomson Reuters boosts pension fund by $500 million
Friday 10 February 2017
Thomson Reuters has paid $500 million cash into its US defined benefit pension plan, strengthening the fund's capital structure and reaping a tax benefit of about $200 million.
The lump sum was paid in January out of the company’s free cash flow. Thomson Reuters expects the contribution will eliminate any material near-term contribution requirements for the US plan.
As a result, the overall funded status of the plan now exceeds 90 per cent based on current market conditions, Thomson Reuters said in its 2016 fourth quarter and full year earnings report published on Thursday.
Like other pension funds both in the United States and UK, Thomson Reuters schemes have suffered from low interest rates on both sides of the Atlantic. ■