Prudential signs pension transfer agreement with General Motors Co.
June 1, 2012 by Dawn Kelly
press release
June 1, 2012, 1:05 p.m. EDT
NEWARK, N.J., Jun 01, 2012 (BUSINESS WIRE) — The Prudential Insurance Company of America, a Prudential Financial, Inc. company [NYSE:PRU], has signed an agreement with General Motors Co. that will allow Prudential to assume certain salaried retiree benefit obligations as part of GM’s plan to reduce pension obligations by approximately $26 billion. Upon closing, which is expected by year-end 2012, GM plans to purchase a group annuity contract from Prudential. Prudential will then assume responsibility for providing benefits to GM’s salaried retirees covered by the agreement, who retired before December 1, 2011.
“This landmark agreement allows GM to maintain the value of U.S. salaried pension benefits for its retirees while significantly reducing its pension obligations,” said Christine Marcks, president of Prudential Retirement. “With our financial strength, investment capabilities and actuarial expertise, Prudential is uniquely suited to assume the responsibility of guaranteeing pension benefits; it has been a core business for Prudential since 1928. We currently provide millions of Americans lifetime income security and look forward to fulfilling the promise of guaranteed lifetime income to these retirees.”
Prudential Financial, Inc. /quotes/zigman/294774/quotes/nls/pru PRU +0.46% , a financial services leader, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/ .
SOURCE: The Prudential Insurance Company of America
Prudential Financial, Inc.
Dawn Kelly, 973-802-7134
Copyright Business Wire 2012
