Prudential Insurance Company of America, a subsidiary of Prudential Financial, has entered into a group annuity contract with Raytheon, a major U.S. defence contractor and industrial corporation, that will see it take over $923 million in pension obligations.
The contract covers approximately 13,000 U.S retirees, as well as their beneficiaries, from Raytheon’s previously discounted operations.
“Prudential is proud to have been chosen to provide retirement security for this group of Raytheon’s retirees and their beneficiaries,” commented Peggy McDonald, the Senior Vice President who led negotiations for Prudential. “We are committed to providing them with a seamless transition.”
As a result of the transfer, Prudential will be responsible for making continuing payments to the affected retirees and their beneficiaries, in accordance with the group annuity contract.
“Prudential is a unique player in the pension risk transfer market, a market that it helped create,” added Scott Kaplan, Prudential’s Head of Pension Risk Transfer.
“Our pension and actuarial expertise, along with our investment capabilities and deep financial resources, help our clients reduce pension risks while allowing them to focus on their core businesses.”
