> According to the company, the plan’s liabilities to qualifying participants would be satisfied through a combination of lump sum distributions and an annuity purchased from an insurance company to cover existing obligations. Kodak, like many corporate pension plans, is in a funding surplus; it has significantly more assets than liabilities owed to plan beneficiaries and participants.
> Kodak retirees would receive an annuity from an insurance company. Current employees, as well as former employees who haven’t yet reached retirement, would be given an option to either receive a lump sum of their balance, or an annuity once they retire. Plan participants wouldn’t see a change in the value of the benefits that have been promised to them, executives said.
> Kodak expects to put a new retirement plan in place for current employees if it terminates the pension. The company hasn’t yet determined whether it would provide a defined-benefit or defined-contribution plan, such as a 401(k). The company would need to have a new plan designed and in place within about a year, executives said.
The money in the pension fund, at least up to an amount needed to satisfy current liabilities, is the property of employees and Kodak has no right to it. It is the surplus that was taken back by Kodak last year, and future payments are the ones that are ceasing. Per WSJ above another retirement plan system will be setup for current employees.
You assume wrong. From November 2024:
> According to the company, the plan’s liabilities to qualifying participants would be satisfied through a combination of lump sum distributions and an annuity purchased from an insurance company to cover existing obligations. Kodak, like many corporate pension plans, is in a funding surplus; it has significantly more assets than liabilities owed to plan beneficiaries and participants.
* https://www.ai-cio.com/news/kodak-considers-terminating-over...
> Kodak retirees would receive an annuity from an insurance company. Current employees, as well as former employees who haven’t yet reached retirement, would be given an option to either receive a lump sum of their balance, or an annuity once they retire. Plan participants wouldn’t see a change in the value of the benefits that have been promised to them, executives said.
> Kodak expects to put a new retirement plan in place for current employees if it terminates the pension. The company hasn’t yet determined whether it would provide a defined-benefit or defined-contribution plan, such as a 401(k). The company would need to have a new plan designed and in place within about a year, executives said.
* https://www.wsj.com/articles/kodak-prepares-to-terminate-u-s...
The money in the pension fund, at least up to an amount needed to satisfy current liabilities, is the property of employees and Kodak has no right to it. It is the surplus that was taken back by Kodak last year, and future payments are the ones that are ceasing. Per WSJ above another retirement plan system will be setup for current employees.