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
MALVERN, Pa.--(BUSINESS WIRE)--
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
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:
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.
Participants will make their election by mail. Participants may contact
the Merrill Lynch Retirement & Benefits Contact Center (RBCC) at
1-866-657-3847. The RBCC will be available for questions regarding the
voluntary lump sum payment offer once the offer opens on July 1, 2014.
As of the last fiscal year end measurement date (December 31, 2013), the
Vishay Retirement Plan was fully-funded on a U.S. generally accepted
accounting principles (GAAP) basis. Settlements pursuant to this offer
will be funded from plan assets and not from Company cash balances.
Vishay continues to seek methods to de-risk its pension exposures,
especially given the frozen status of the U.S. plans and the current
funded status. Such actions could result, for the short-term, in
increased net periodic pension cost due to lower expected rates of
return on plan assets and/or possible changes to recognize unamortized
actuarial items if all or a portion of the obligations were to be
settled. The accounting impacts of such actions will vary greatly
depending on the number of plan participants who accept the lump sum
Vishay Intertechnology, Inc., a Fortune 1,000 Company listed on the NYSE
(VSH), is one of the world's largest manufacturers of discrete
semiconductors (diodes, MOSFETs, and infrared optoelectronics) and
passive electronic components (resistors, inductors, and capacitors).
These components are used in virtually all types of electronic devices
and equipment, in the industrial, computing, automotive, consumer,
telecommunications, military, aerospace, power supplies, and medical
markets. Vishay’s product innovations, successful acquisition strategy,
and “one-stop shop” service have made it a global industry leader.
Vishay can be found on the Internet at http://www.vishay.com.
Statements contained herein that relate to the Company’s expected
management of its pension obligations, including statements with respect
to the Vishay Retirement Plan, expected voluntary lump sum payment
funding sources and short-term pension costs, are forward-looking
statements within the safe harbor provisions of Private Securities
Litigation Reform Act of 1995. Words such as “believe,” “estimate,”
“will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “project,”
“intend,” “could,” “should,” or other similar words or expressions often
identify forward-looking statements. Such statements are based on
current expectations only, and are subject to certain risks,
uncertainties and assumptions, many of which are beyond our control.
Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results,
performance, or achievements may vary materially from those anticipated,
estimated or projected. Among the factors that could cause actual
results to materially differ include: general business and economic
conditions; changes in U.S. prevailing interest rates; and other factors
affecting our operations that are set forth in our filings with the
Securities and Exchange Commission, including our annual reports on Form
10-K and our quarterly reports on Form 10-Q. We undertake no obligation
to publicly update or revise any forward-looking statements, whether as
a result of new information, future events or otherwise.
Vishay Intertechnology, Inc.
Peter G. Henrici
President, Corporate Communications
Source: Vishay Intertechnology, Inc.