Eastman Kodak Company terminated its overfunded U.S. pension plan, the Kodak Retirement Income Plan (KRIP), to redirect the excess funds toward reducing outstanding debt. According to company statements, Kodak expects to receive approximately $300 million in cash from the reversion and settlement of KRIP, which will be used to reduce leverage and improve financial stability significantly.
As part of the transition, Kodak is replacing KRIP with a new cash balance plan to ensure employees continue to receive retirement benefits. The move comes at a time when the company is seeking to address debt obligations maturing within the next 12 months, with management confident that the pension reversion will help make Kodak virtually net debt free. By shifting to a modernized plan design, Kodak also aims to provide a more flexible and sustainable retirement program for its workforce while reinforcing its long-term financial health.
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