Kimberly-Clark Corporation to Purchase Pension Annuity Contracts from Prudential, MassMutual

Kimberly-Clark Corporation announced its purchase of group annuity contracts from The Prudential Insurance Company of America and Massachusetts Mutual Life Insurance Company that will reduce the company’s pension liabilities by approximately $2.5 billion.

Beginning in June, the two insurers will evenly split the financial responsibility for the pension benefits of approximately 21,000 U.S. retirees. Under the agreement, retirees will receive their benefit payments directly from Prudential, which will be the annuity administrator.

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