October 17, 2012
(Reuters) – Verizon Communications Inc will transfer $7.5 billion in pension obligations to insurer Prudential, removing a quarter of its long-term employee retirement burden with a single upfront payment.
The move by the company, which operates No. 1 U.S. wireless carrier Verizon Wireless with Vodafone Group, follows a similar deal that General Motors Co did with Prudential earlier this year.
The transaction affects U.S. management pension benefits covering about 41,000 current management retirees, Verizon said in a statement on Wednesday.