pension reversion

Pension reversion

Termination of an overfunded defined benefit pension plan and replacement of it with a life insurance company-sponsored fixed annuity plan.

Pension Reversion

The act of a company canceling an over-funded pension plan in order to recover the amount by which it is over-funded. In addition, pension reversion usually also involves replacing the canceled plan with a less expensive, fixed annuity plan using funds recovered from the former plan. The amount by which funds from the former plan exceed the cost of the new plan is paid to the company or employer.

pension reversion

Termination of a pension plan by an employer that wishes to capture the amount by which the plan is overfunded. Pension reversions are generally accomplished by using funds in the plan to purchase a fixed annuity from an insurance company. Excess funds beyond the cost of the annuity revert to the company.
References in periodicals archive ?
Included in the 2001 year was a gain on pension reversion, net of excise and income taxes, of $3.
The ATB held that the distribution of pension reversion income from a subsidiary to its parent was excludible from state taxable income, because the subsidiary was being liquidated.
The change in the rating reflects UNA's strengthening its balance sheet by reducing debt levels through a pension reversion, asset sales, reduction of net working assets, and a series of patent settlements.
Included in the 2001 period was a gain on a pension reversion, net of excise and income taxes, of $3.
A court of appeal held that a taxpayer's pension reversion income was not includible in business income under either a transactional or functional test.
The decrease was due to Panavision losses since the April 19, 2001 acquisition, the settlement of shareholder litigation and lower pension income partially offset by a gain on a pension reversion and an extraordinary gain, net of taxes, of $4.
57 per share) related to excise tax on the pension reversion partially offset by a $3.
The decrease was due to Panavision losses since the April 19, 2001 acquisition, the settlement of the shareholder litigation, and lower pension income offset by a gain on a pension reversion.
1 million in second quarter 2000 due to lower pension income resulting from a pension reversion in the first quarter of 2001 offset in part by higher income from the higher licorice sales and the accretive effect of Panavision.
Such events include a pension reversion (2001) and the sale of UNA's headquarters property (2002).
The results include a pre-tax writedown of $59 million associated with the previously announced retirement of 15 McDonnell Douglas DC-10-10s and income of $44 million for the settlement of a pension reversion dating back to 1985.
31 per share) related to excise taxes on the pension reversion partially offset by a $3.