And Another One Bites The Dust

According to P&I, Avery Dennison Corp will terminate its defined benefit plan. In addition, they will make a $200 million contribution prior to August 15th in order to claim a tax deduction on their 2017 taxes.

The U.S. DB plan has a funded ratio below 70%. The company is looking to settle its liability, estimated to be $950 million, through a combination of lump-sum distributions and an annuity contract (which is not inexpensive). There is no mention on the path going forward for Avery Dennison employees.

I suspect that Avery Dennison shareholders have benefited from recent federal tax law changes. I guess it is too much to ask that their employees also receive some of that largesse.

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