Verizon Communications Inc. agreed to purchase a group annuity contract from Prudential Insurance Co. of America to transfer $7.5 billion in pension obligations, according to its SEC filings.
This transfer was considered a “lift-out” because Verizon did not terminate its pension plan. This pension de-risking transaction covered approximately 41,000 retired salaried employees who began receiving their pension payments before January 1, 2010. No Retirees represented by unions were affected. Verizon reportedly contributed $2.5 Billion to the plan prior to the pension de-risking transfer.