US. Prudential Entrusted with Pension Promises to Approximately 45,000 International Paper Retirees
International Paper (NYSE:IP) will settle approximately $1.3 billion of its pension obligations by purchasing a group annuity contract from The Prudential Insurance Company of America (NYSE: PRU), a leader in retirement benefits. The agreement transfers to Prudential the responsibility for paying pension benefits to roughly 45,000 of International Paper’s retirees and their beneficiaries.
International Paper’s decision to transfer a portion of its pension obligations to Prudential is consistent with a strong trend among U.S. companies that are seeking solutions to help them better manage their pension risks and costs.
Peggy McDonald, the senior vice president who led negotiations for Prudential, said, “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.”
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