Verizon Communications announced plans to transfer $7.5 billion in management pension plan obligations to The Prudential Insurance Company of America pursuant to which the Verizon Management Pension Plan (the “Plan”). This will help transfer $7.5 billion of Verizon’s nearly $30 billion in outstanding pension obligations.
Under the agreement, the Plan will purchase a group annuity contract from Prudential, which will then assume the obligation to make future annuity payments to certain Verizon management retirees. The amount of each retiree’s annuity payment will be equal to the amount of such individual’s pension benefit.
The transaction affects Verizon’s U.S. management pension benefits covering approximately 41,000 current management retirees. Current management employees, former management employees who retired on or after Jan. 1, 2010, and certain other retirees are not affected. Union-represented employees and formerly union-represented retirees are not affected as well.
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