8-KOther Events

EQUIFAX INC 8-K Report, Corporate Update (Oct 1, 2012)

Filed October 1, 2012For Securities:EFX

Summary

Equifax Inc. (EFX) announced on October 1, 2012, a voluntary pension buyout offer to approximately 3,500 former employees who left the company before January 1, 2012, and have not yet begun receiving pension benefits. This offer represents a strategic move to reduce the company's long-term pension obligations, which constituted about 20% of its total qualified pension plan liabilities of approximately $630 million as of December 31, 2011. Participants have the option to receive their vested pension benefits as a lump sum payment by December 31, 2012, or a reduced monthly annuity starting December 1, 2012. The lump sum can be taken as cash or rolled over into a qualified retirement plan or IRA. Equifax expects to recognize a non-cash settlement charge in the fourth quarter of 2012, the exact amount of which will depend on participation rates and various actuarial factors.

Key Highlights

  • 1Equifax is offering former employees a voluntary pension buyout.
  • 2The offer targets approximately 3,500 vested participants who left before 2012 and haven't started benefits.
  • 3This initiative aims to reduce the size and volatility of Equifax's long-term pension obligations.
  • 4The offer accounts for roughly 20% of Equifax's total qualified pension plan liabilities ($630 million as of Dec 31, 2011).
  • 5Eligible participants can elect a lump sum payment (cash or rollover) by December 31, 2012, or a reduced monthly annuity starting December 1, 2012.
  • 6The election period for participants runs from October 8 to November 16, 2012.
  • 7A non-cash settlement charge is expected in the fourth quarter of 2012, dependent on participation and actuarial assumptions.

Frequently Asked Questions

The primary purpose is to inform investors that Equifax is initiating a voluntary pension buyout program for certain former employees. This is a strategic effort to de-risk and reduce the company's exposure to long-term pension obligations.

Equifax expects to record a non-cash settlement charge in the fourth quarter of 2012. The magnitude of this charge will be influenced by how many participants accept the lump sum offer and by various actuarial and investment return assumptions.

The offer is for approximately 3,500 vested participants in the Equifax Inc. U.S. Retirement Income Plan who terminated their employment before January 1, 2012, and have not yet begun receiving their monthly pension payments.

Eligible participants can elect to receive their vested pension benefit as a lump sum payment (either in cash or rolled over to a qualified retirement plan/IRA) payable by December 31, 2012, or opt for a reduced monthly annuity that will commence on December 1, 2012.