A new pension risk transfer agreement has been reached between International Paper and The Prudential Insurance Company of America, which sees the former purchase a group annuity contract to settle roughly $1.3 billion of its pension obligations.
Under the agreement, Prudential is transferred the pension obligations of approximately 45,000 of International Paper’s retirees and their beneficiaries, a transaction designed to enable the firm to better manage its pension risk.
Peggy McDonald, Senior Vice President, Prudential, and who led the negotiations, commented; “We are proud that International Paper has chosen Prudential to provide retirement security for about 45,000 of International Paper’s former employees. We are committed to providing them with a seamless transition.”
Prudential’s Head of Pension Risk Transfer, Scott Kaplan, added; “Prudential is a unique player in the pension risk transfer market, a market that it helped to create. We combine strong pension and actuarial expertise with investment capabilities and deep financial resources. Together, these factors help our clients reduce pension risk while allowing them to focus on their core business.
“Equally important, Prudential is fundamentally committed to keeping its promises to these retirees and their beneficiaries.”
