The Prudential Insurance Company of America has inked a purchase deal with Verizon Management Pension Plan, to settle nearly $7.5bn of pension liabilities under a single premium group annuity contract.
As per terms of the agreement, Prudential Insurance will permanently assume the obligation from 1 January 2013, to make future annuity payments to nearly 41,000 members of the Verizon Pension Plan.
Prudential Retirement president Christine Marcks said that Verizon retirees will now receive annuity payments from the company.
"Prudential is focused on helping people achieve retirement security, and we look forward to providing guaranteed lifetime income to these retirees," Marcks added.
The firm trades in the US, Asia, Europe, and Latin America and delivers life insurance, annuities, retirement-related services, mutual funds and investment management.
The company has a workforce of 50,100 employees, $1.005 trillion in assets under management, and offers underwriting services across 38 countries and territories, globally.