Prudential signs pension risk transfer agreement with Verizon Communications Inc.
NEWARK, N.J.--(BUSINESS WIRE)-- The Prudential Insurance Company of America, a Prudential Financial, Inc. company (NYSE: PRU ) , has signed an agreement with Verizon Communications Inc. that is expected to lead to the transfer of approximately $7.5 billion of the Verizon Management Pension Plan obligations to Prudential. Upon closing, which subject to certain conditions is expected to occur in December 2012, the Verizon Management Pension Plan will purchase a group annuity contract from Prudential. Prudential will then assume responsibility for making payments to the retirees covered by the agreement. The agreement covers approximately 41,000 Verizon Management Pension Plan participants who retired and started receiving pension benefits before January 1, 2010.
“We are delighted that Verizon will meet its pension obligations for these retirees by agreeing to purchase monthly guaranteed annuity benefits from Prudential,” said Christine Marcks, president of Prudential Retirement. “This agreement underscores our financial strength, pension management expertise and investment capabilities. We look forward to the opportunity to provide the guaranteed lifetime income these retirees would have received under the Verizon Management Pension Plan, as we have done for millions of Americans since 1928.”
Prudential Financial, Inc. (NYSE: PRU ) , a financial services leader, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/.
KEYWORDS: United States North America New Jersey