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

Under the agreement, which NCR said is part of its pension transformation strategy, the Pension Insurance Corp. will assume the obligations for paying benefits to all participants. In exchange, NCR, of Duluth, Ga., will pay a premium to the insurer.

“The agreement … is part of the third phase of NCR’s pension transformation strategy that aims to reduce our global liability and increase recurring free cash flow,” said John Boudreau, vice president and treasurer of NCR, in a statement. “We are pleased that the Plan will maintain a robust financial footing and expect to take additional steps to accomplish a full buyout.”