AstraZeneca Says Goodbye to U.S. Corporate Pension Plan
Posted on 02/07/2022
AstraZeneca Pharmaceuticals LP (AstraZeneca US) is the U.S. subsidiary of AstraZeneca plc. In late January 2022, AstraZeneca US informed 7,000 workers and retirees at its U.S-based research and manufacturing locations a notice of intent to terminate the plan March 31, 2022. The company employs 14,000 workers in the U.S. New hires were locked out of the pension plan in 2000 and froze all new benefit accruals in late 2017. AstraZeneca plans to transfer its U.S. pension assets to an insurance company. The U.S. plan currently has US$ 1.3 billion in assets under management, according to its Form 5500.
“On January 25, 2022, AstraZeneca informed participants of its qualified U.S. Defined Benefit Pension Plan that it is beginning a transition, which involves transferring the responsibility for payments, recordkeeping and asset management to a qualified, carefully selected insurance company with expertise in the long-term management of pension benefits,” the company said in a statement. “This is a common practice, achieved via a process known as ‘plan termination’ and ‘buy-out.’ This action does not impact any participant’s eligibility to receive the benefit earned under the Pension Plan.”
Keywords: AstraZeneca Pharmaceutical Company, AstraZeneca plc.
