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Administration January 21, 2011
Alcoa Makes $600M Stock Contribution to Pension Plans
January 21, 2011 (PLANSPONSOR.com) – The Board of Directors of Alcoa authorized a contribution of up to $600 million in Alcoa common stock to the company’s defined benefit pension plans.
Reported by Fred Schneyer
The company expects to complete the contribution in the first quarter of 2011. The stock contribution will improve the funded status of Alcoa’s pension plans and provide financial flexibility, Alcoa said in a news release.
The company will make additional cash contributions of approximately $300 million in 2011 to improve the funded status of its plans, according to the announcement.
The shares of common stock to be contributed to the pension plans will not be registered under the Securities Act of 1933, as amended, or any state securities laws at the time of contribution and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements, Alcoa said.