Prudential, Raytheon Reach Deal On $923 Mln Pension Risk Transfer

(RTTNews) - Raytheon (RTN) will reduce its pension obligations by $923 million by purchasing a group annuity contract from The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc. (PRU). The agreement transfers the responsibility for paying certain pension benefits to approximately 13,000 U.S. retirees, as well as their beneficiaries, from Raytheon's previously discontinued operations.

As a result of the transfer, Prudential will be responsible for making continuing payments to the affected retirees and their beneficiaries, in accordance with the group annuity contract.

Since 1923, Prudential has offered pension solutions to companies and organizations. In 2017, Prudential made more than $11 billion in pension payments to more than 1.3 million retirees and their beneficiaries. Prudential is the global leader in pension risk transfer solutions.