The Prudential Insurance Company of America has inked a deal with Verizon Communications, pursuant to which the latter will transfer nearly $7.5bn in pension plan obligations to the former.
Following the completion of the deal expected in December 2012, the Verizon Management Pension Plan will buy a group annuity contract from the US underwriter and it will assume responsibility for making payments to the retirees covered by the agreement.
The deal will provide pension coverage to nearly 41,000 Verizon Management Pension Plan participants who retired and started receiving pension benefits before 1 January 2010.
Prudential Retirement president Christine Marcks said, "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 trades in the US, Asia, Europe, and Latin America and offers a number of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management.