The Prudential Insurance Company, a subsidiary of Prudential Financial is to assume responsibility for paying pension benefits to ~23,000 of International Paper’s retirees, following an agreed transfer of $1.6 billion in pension liabilities.
The agreement is the second pension risk transfer between the two companies in just over a year. Last October, International Paper agreed to transfer approximately $1.3 billion of its pension liabilities to Prudential, an agreement covering 45,000 of International Paper’s retirees.
“We are proud that Prudential has again been chosen to help secure and maintain the retirement benefits of International Paper’s retirees,” said Glenn O’Brien, Managing Director and Head of new business for Prudential Retirement.
“International Paper is entrusting its pension promises to a company with deep experience in managing retirement benefits, and we are committed to providing these retirees with a seamless transition.”
Scott Kaplan, the Head of pension risk transfer at Prudential, added, “As a leader in pension risk transfers, Prudential is able to leverage its investment capabilities, its actuarial expertise and its strong balance sheet in ways that help companies reduce their risks and enable them to focus on their core operations.”
“Equally important, Prudential is fundamentally committed to keeping its promises to these retirees and their beneficiaries.”
