Company: KRO
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001257640-25-000009
Chunk: 55

Company: KRONOS WORLDWIDE INC
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 55
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 | the NL Plan and LPC Plan are both frozen (with no new participants added or benefits accrued), have similar benefits and are comprised predominantly of front-line manufacturing workers; |

| ● | approximately 90% of NL Plan participants have reached retirement age and are receiving benefits, whereas approximately one-half of LPC Plan participants have not reached retirement age and are not yet receiving benefits; |

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| ● | under the terms of the proposed merger, each of NL and Kronos Worldwide would be contractually obligated to bear its respective share of the Merged Plan costs, and NL and Kronos Worldwide would each continue to account for their respective portions of the Merged Plan as if it were a separate employee benefit plan; |

| ● | although management does not currently expect future funding requirements for the Merged Plan (due to the overfunded status of the Merged Plan), future funding and administrative costs would be allocated proportionately to NL and Kronos Worldwide based on their respective historical participants in the Merged Plan; |

| ● | following the proposed merger, NL and Kronos Worldwide will remain in the same consolidated group for federal tax purposes and per applicable law will remain jointly and severally liable for any funding shortfalls that may arise in the Merged Plan; |

| ● | if the Merged Plan were to be terminated in the future, Kronos Worldwide would be entitled to all funding surplus attributable to the Kronos Worldwide participants as if it were a separate benefit plan; |

| ● | all valuations for the NL Plan prior to the merger will be determined by Willis Towers Watson US LLC (“WTW”), the current independent actuary for the NL Plan, and all valuations for the Merged Plan following the merger will be determined by WTW; |

| ● | all valuations of the LPC Plan prior to the merger will be determined by Nova 401(k) Associates, the current independent actuary for the LPC Plan; |

| ● | the merger will provide substantial monetary benefits to Kronos Worldwide by removing Kronos Worldwide’s current funding obligations, reducing Kronos Worldwide’s Pension Benefits Guaranty Corporation premiums and reducing its annual plan administrative and related costs; |

| ● | a merger of the LPC Plan into the NL Plan positions the Merged Plan for termination in the future on a cost-effective basis by combining the relative demographics of the two plans to maximize the availability of in-pay status participants, which is the more desirable demographic to potential insurance companies submitting competing bids to provide the annuities required to terminate the Merged Plan; and