Eastman Kodak Co. is disbanding a team that manages the firm’s US$1.6 trillion of pension investments and moving its management to Boston-based investment consulting firm NEPC.
In a statement, the organization said as at Dec. 31, 2022, the fair value of plan assets was approximately $3.7 billion, with the projected benefit obligation of the plan at approximately $2.5 billion, representing an overfunded status of approximately $1.2 billion.
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Kodak said it had been exploring a move alongside the pension plan’s committee to “maximize the value of the over-funding for the benefit of key stakeholders including current and former employees and shareholders.
“There can be no assurances that Kodak will receive excess assets from the plan or concerning the timing or amount of any such receipt,” said the statement. “All liabilities of the plan must be satisfied before any excess assets will revert to Kodak, and any amounts that ultimately revert to Kodak will depend on the amount of such liabilities and the future investment performance and value of the plan assets. Also, any amount received will be subject to material excise tax and other obligations.”
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