Visteon to Offer Lump Sums to Retirees

Visteon Corp. will offer a lump-sum pension buyout to some participants in its U.S. defined-benefits plan in a bid to shrink the liabilities on its balance sheet.

Visteon says the offer is open to 10,000 former employees who are vested participants in the pension plan but are not currently receiving benefits.

Eligible employees and retirees can opt to take one-time cash payments from pension fund assets or maintain their existing rights to monthly benefits. The offer, which applies to nearly half of the employees in the company's U.S. pension plans, will be open from Oct. 1 to Nov. 9.

Visteon did not explain how the buyout sums are calculated. The company expects to take a one-time charge to earnings. It says the cost of the program will depend on such factors as how many employs accept buyouts and the value of pension assets involved.