NCR. Corp. announced it has agreed to shift its $1 billion U.K.pension plan, which covers 5,400 current and former employees, to aBritish insurance company.

Under the agreement, which NCR said is part of its pensiontransformation strategy, the Pension Insurance Corp. will assumethe obligations for paying benefits to all participants. Inexchange, NCR, of Duluth, Ga., will pay a premium to theinsurer.

“The agreement … is part of the third phase of NCR’s pensiontransformation strategy that aims to reduce our global liabilityand increase recurring free cash flow,” said John Boudreau, vicepresident and treasurer of NCR, in a statement. “We are pleasedthat the Plan will maintain a robust financial footing and expectto take additional steps to accomplish a fullbuyout.”

As part of its strategy to cut the costs of its pensionobligations, NCR moved the assets of its frozen defined benefitsplan into fixed income instruments. Last year, the company offeredU.S. vested, non-retired pension plan participants the option oftaking a lump sum payout. It also contributed $800 million tothe fund to decrease its unfunded liabilities.

As of Dec. 31, NCR's international pension fund assets totaled $2.3 billion with 60percent to 70 percent of those assets invested in fixed incomeinstruments.

NCR, which makes ATMs and self-checkout machines, employs 26,000workers and does business in 180 countries. Its 2012 revenue was$5.7 billion.