In a press release dated December $3,2018,$ Bristol Myers Squibb disclosed the following with respect

to its pension plans $($excerpted$).$

NEW YORK $($BUSINESS WIRE$)$ Bristol$-$Myers Squibb Company $($NYSE: BMY$)$ today announced

it will transfer $$3\mathrm{.}8$ billion of U$.$S$.$ pension obligations through a full termination of its

U$.$S$.$ Retirement Income Plan. The obligations will be distributed through a combination of lump

sums to Plan participants who elect such payments, and the purchase of a group annuity contract

from Athene Annuity and Life Company, for all remaining liabilities.

The Plan includes approximately $4,800$ active employees, $1,400$ retirees and their beneficiaries

receiving benefits, and $18,000$ prior Bristol$-$Myers Squibb employees who have not yet

initiated their benefits. Current Plan provisions, benefit payment options and in$-$pay benefits will

remain available for all participants.

Upon closing of this transaction in the third quarter of $2019,$ the Company expects a noncash

pre$-$tax pension settlement charge of approximately $$1\mathrm{.}5$ billion$$$$2$ billion.

Required

a$.$ Why would the company engage in such a transaction?

Answer $1$

To limit future cash flow for the pension plan

b$.$ What are the two payout options available to the company$$s employees, retirees, and prior employees?

Payout option?

One$-$time cash lump sum payment Answer $2$

Yes

Retirement annuity paid by Bristol Myers Squibb Answer $3$

No

Retirement annuity paid by the life insurance company Answer $4$

Yes

Choose the current plan Answer $5$

No

c$.$ At December $31,2018,$ Bristol Myers Squibb reported a funded status of $$163$ million on its balance sheet. What will be the net funded status at December $31,2019?$

For this question, assume the $$163$ million relate solely to the U$.$S$.$ Retirement Income Plan.