Verizon Communications Inc. has agreed to transfer about $7.5 billion in management pension plan obligations to Prudential Financial Inc., as the telecom heavyweight looks to improve its long-term term financial profile.
Under the agreement, Verizon's management pension plan will purchase a group annuity contract from Prudential Insurance Co. of America, which will then assume responsibility for making payments to certain Verizon management retirees. The transfer is expected to close in December,
The deal is expected to further Verizon's goal of de-risking its pension plan. Verizon has nearly $30 billion in outstanding pension obligations.