Vishay Intertechnology, Inc. (NYSE: VSH) announced today that it will offer a special limited-time voluntary lump sum payment opportunity to certain former employees who are deferred vested participants of the Vishay Retirement Plan, the Company’s U.S. qualified pension plan, and who are not currently receiving periodic payments of their pension benefit.
Vishay is making this voluntary offer to provide greater flexibility for eligible participants to manage their retirement savings and also to assist the Company’s overall management of its pension obligations.
The Vishay Retirement Plan is a defined benefit pension plan which covers U.S. employees and former employees of Vishay Intertechnology, Inc. and several of its U.S. subsidiaries. The plan is qualified under the Employee Retirement Income Security Act of 1974 (“ERISA”). In 2008, Vishay adopted amendments to freeze the plan, such that no new employees were permitted to participate, and no further benefits would accrue. Also effective December 31, 2008, Vishay merged its other qualified U.S. pension plans into the Vishay Retirement Plan. These included the General Semiconductor, Inc. Pension Plan, the Pension Plan for Hourly-Rated Employees of Sprague North Adams, Inc., and the BLH Retirement Plan for Hourly Paid Shop Employees. There are approximately 2,200 participants eligible for this offer, representing approximately 35% of the total participants in the Vishay Retirement Plan.
Eligible participants will receive their offer materials by mail and will have from July 1, 2014 until September 2, 2014 to make a decision and select one of the offer choices, which include:
- One-time lump sum payout rolled over to an IRA or another employer’s qualified plan (if permitted by that plan);
- One-time lump sum payout in cash payable in September 2014;
- Monthly annuity payment (single life or joint and survivor) commencing in September 2014; or
- Take no action (remain in the Vishay Retirement Plan as a deferred vested participant).
Vishay has selected The Retirement Group at Merrill Lynch to administer the voluntary lump sum offer for eligible participants. Materials will be sent to the home address for each eligible participant by regular mail on or about June 27, 2014.