RockTenn announced that it is offering a one-time lump sum payment to certain eligible former employees who participate in the following U.S. Defined Benefit Pension Plans and are not currently receiving a monthly benefit:
• The Rock-Tenn Company Pension Plan for Certain Salaried Employees (SSCC) (formerly the Smurfit-Stone Container Corporation Pension Plan For Salaried Employees);
• The Rock-Tenn Company Consolidated Pension Plan; and
• The RTS Packaging, LLC Consolidated Pension Plan.
Eligible former employees can voluntarily accept the offer from July 1 to Aug. 5, 2014. A former employee who does not accept the offer continues to be entitled to his or her monthly pension at retirement. Based on the experience of other companies implementing similar programs, the company’s advisors estimate that former employees representing between $200 million and $300 million of the aggregate pension benefit obligation will accept the offer.
Distributions to eligible former employees will be made out of existing plan assets in the company’s fiscal fourth quarter. RockTenn will not be required to make additional contributions into these plans as a result of the proposed transaction. Each plan’s funded status is expected to remain materially unchanged as a result of this offer.
“This offer provides certain eligible former employees who are not currently receiving a monthly benefit the opportunity to receive a lump sum payment and have more control over managing their retirement money,” said Ward Dickson, executive vice president and CFO of RockTenn. “We expect to offer a similar program to certain eligible former employees who participate in the Rock-Tenn Company Pension Plan for Certain Hourly Employees (SSCC) (formerly the Smurfit-Stone Container Corporation Pension Plan for Hourly Employees) later this year.”