IBM offloads pension obligations for 100,000 workers, beneficiaries – will take $5.9B charge

RESEARCH TRIANGLE PARK – IBM has struck a deal to offload pension obligations totaling some $16 billion for more than 100,000 workers, plan participants and beneficiaries in a deal that will cost the company nearly $6 billion.

IBM says it will take a charge of some $5.9 billion but added the deal doesn’t affect its current free cash flow or adjusted profit, according to MarketWatch.

Bloomberg notes that the affected plans are annuities “funded directly by the assets of the pension plan and required no cash or asset contributions from IBM.”

IBM is moving the obligations to MetLife and Prudential Financial, the media reports said, citing a regulatory filing by IBM.

The filing was made late Tuesday,