Kodak Dumps Pension Plan to Pay Off $500 Million Massive Debt.

August 20, 2025 – Rochester, NY — Eastman Kodak is terminating its 97-year-old pension plan to unlock nearly $1 billion in surplus assets, using the funds to pay off between $470 million and $500 million in debt. The company’s traditional defined-benefit plan, once a hallmark of employee security, will be replaced by a cash balance plan. Kodak is allocating about $220–$245 million to fund the new plan, allowing it to reduce IRS excise taxes tied to the pension reversion. Retirees and employees will choose by mid-August between lump sums or annuities, with the transition expected to be complete by December 2025.

Facing ongoing financial pressure and a shift away from its legacy film business, Kodak says the move is essential to survival. Once complete, the company expects to be nearly debt-free. The decision underscores the broader corporate shift away from pensions—marking the end of an era for one of America’s most iconic employers.