International Paper Transfers $1.6 Billion in Pension Liabilities to Prudential
International Paper will settle approximately $1.6 billion of its pension obligations by purchasing a group annuity contract from The Prudential Insurance Company of America. As part of this agreement, Prudential will assume the responsibility for paying pension benefits to about 23,000 of International Paper’s retirees.
This agreement is the second pension risk transfer between the two companies in just over a year. Last October, International Paper agreed to transfer approximately $1.3 billion of its pension liabilities to Prudential, an agreement covering 45,000 retirees.