NEW YORK (AP) — Verizon Communications Inc. says it will transfer $7.5 billion of its pension plan obligations to The Prudential Insurance Company of America.
The communications company will buy a group annuity contract from Prudential, and Prudential will assume responsibility for making payments to the roughly 41,000 management retirees under the plan.
The companies said Wednesday that the move will transfer payment responsibilities to Prudential and lower Verizon’s overall pension risk.
Verizon says the deal will not affect the payments made to members of its U.S. management pension plan.
The deal settles only a portion of the company’s $30 billion in outstanding pension obligations.
