Corporate ActionMay 18, 2026, 04:27 PM
Blue Bird to Transfer $94M Pension Liabilities; Expects Settlement Charge
AI Summary
Blue Bird Body Company, a wholly-owned subsidiary of Blue Bird Corporation, entered into an agreement with Pacific Life Insurance Company to transfer future benefit obligations and annuity administration for 2,044 Plan participants. This involves purchasing group annuity contracts and follows approximately $13 million in lump-sum payments made in April 2026. The remaining $94 million in Plan liabilities will be settled through these contracts, with all transactions funded entirely by Plan assets. The company anticipates recognizing a material non-cash pension settlement charge in its third fiscal quarter, and the Plan will terminate after these transfers.
Key Highlights
- Blue Bird Body Company entered an agreement with Pacific Life to transfer pension benefit obligations for 2,044 participants.
- The Plan will purchase group annuity contracts from Pacific Life, irrevocably transferring pension benefit obligations.
- Approximately $13 million of Plan liabilities were paid through lump-sum distributions in April 2026.
- Remaining Plan liabilities of approximately $94 million will be settled through the purchase of group annuity contracts.
- Transactions are funded entirely by Plan assets, requiring no additional funding from Blue Bird Corporation.
- Blue Bird expects to recognize a material non-cash pension settlement charge in its third fiscal quarter ending June 27, 2026.
- The Blue Bird Body Company Employee Pension Plan will terminate following these transfers.
Price Impact
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