Ford Motor Company (NYSE: F) will offer a pension buyout to 98,000 retirees and former employees of the nation's second biggest car company, according to reports.

Ford will offer former employees and retirees the option of taking a single lump sum payment in lieu of normal pension payments as part of an attempt to cut down the company's $74 billion global pension obligation, Reuters said Thursday. The carmaker's market capitalization is around $40 billion, and last year, the pension plan was underfunded by $15.4 billion, although this amount fluctuates with interest rates from year to year.

Between 12,000 and 15,000 U.S. workers will receive the first round of buyout offers in August, according to Reuters. The goal of the buyouts is to reduce the overall outstanding obligation by the company. The pension buyouts may decrease Ford's $50 billion U.S. pension liability by one-third, according to the Chicago Tribune.