Prudential takes over $3.1B in pension liability from Motorola

September 25, 2014 by Laura Davison, Bloomberg

(Bloomberg) — Motorola Solutions Inc. plans to reduce its pension obligations by $4.2 billion as it transfers liabilities to Prudential Financial Inc. and offers some employees lump-sum payments.

Prudential, the No. 2 U.S. life insurer, will assume responsibility for future pension payments to about 30,000 Motorola Solutions retirees, the Schaumburg, Illinois-based maker of two-way radios and other communications equipment said today in a statement.

Employers with pension obligations are under pressure as persistently low interest rates make it more difficult to generate returns on money set aside for liabilities. Click here to read…

Originally Posted at LifeHealthPro on September 25, 2014 by Laura Davison, Bloomberg.