Case Study: a leading pension plan company reduces $1B in liabilities with Conduent Pension De-Risking

Leading Pension Plan Company - Customer Case Study

A leading pension plan company, a major manufacturing firm with 200,000 employees, faced significant financial risk from its $31 billion defined benefit pension plan. Skyrocketing PBGC premiums and unpredictable pension expenses persisted despite previous changes to the retirement program. The company partnered with Conduent to address this challenge and de-risk its pension liabilities.

Conduent implemented a solution by offering a series of lump-sum cash outs to the plan's participants, supported by a special call center and communications to guide members. This project successfully removed over $1 billion in liabilities from the company's books. The initiative, which saw a take rate of over 50% from participants, also resulted in savings of over $300 million in PBGC premiums. Conduent's work provided the company with significant financial relief and reduced future cost volatility.