Prudential announces $6bn pension risk transfer with IBM

Written by Michael Griffiths

12/09/2024

Prudential has been selected for a second pension risk transfer with International Business Machines Corporation (IBM).

The IBM Personal Pension Plan has purchased a single premium group annuity contract that will transfer approximately $6bn of the Plan’s defined benefit pension obligations to The Prudential Insurance Company of America, a subsidiary of Prudential Financial.

Prudential will assume responsibility for making retirement benefit payments to the transaction’s population of approximately 32,000 retirees and their beneficiaries, beginning 1 January 2025.

The latest transaction marks the second pension risk transfer agreement between Prudential and IBM.

In 2022, Prudential was selected as one of two insurers for a $16bn total pension risk transfer, making it the second-largest pension buy-out ever in the US. The 2022 deal covered approximately 100,000 IBM retirees and beneficiaries, with Prudential acting as the lead administrator.

“Prudential is proud to again be entrusted to help protect the life’s work of IBM retirees,” commented head of US pension risk transfer at Prudential Retirement Strategies, Julia Senchak.

“Our deep commitment and expertise in flawlessly transitioning and administering benefit promises will provide participants with exceptional service and retirement security.”

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