Raytheon Reduces Pension Liabilities by $923 Million in Agreement with Prudential
Approximately 13,000 of Raytheon’s retirees and their beneficiaries will soon receive their pension benefit payment from Prudential. The decision to transfer a portion of Raytheon’s pension obligations to Prudential highlights a growing trend among U.S. companies that offer defined benefit pension plans. Plan sponsors are increasingly looking to transfer some of their obligations due to the increasing risks and costs of maintaining large plans.
In recent years, many plans have increased their pension contributions, but with recent tax reforms, companies are accelerating their contributions ahead of September 14, 2018, to take advantage of expiring tax deductions. Raytheon contributed more than $1.6 billion to its pension plans in 2017.