Eastman Kodak thinks they have a plan to wring some money out of their pension plan. The pension plan has billions of dollars that are pledged to former employees. Kodak will sell part the pension fund the Mastercard Foundation and receive over $500 million to invest in the company.
As part of the process, the current pension plan will be closed out. An undetermined insurance company would distribute funds to retirees. Kodak says that 35,000 retirees would still end up with the same monthly payment that they are currently getting. All of the 2,000 current US Kodak employees (4,000 worldwide) would end up with a new pension plan to be determined later.
The plan has to get approved by the Securities and Exchange Commission (SEC). Kodak expects that it will be passed by the SEC as other companies have done the same recently. It could take up to 2 years in order for the old pension plan to be closed