Verizon completes $5.9 billion transfer of pension plan liabilities

Client(s) Verizon Communications, Inc.

Jones Day advised Verizon Communications Inc. in a major pension de-risking transaction that reduced Verizon’s pension benefit obligations by about $5.9 billion, covering a population that includes 56,000 Verizon retirees and their beneficiaries who began receiving benefits before January 1, 2023.  The reduction was accomplished through the purchase of group annuity contracts from The Prudential Insurance Company of America (Prudential) and RGA Reinsurance Company (RGA).  Prudential and RGA will each irrevocably guarantee and assume 50% of the benefit obligation to the retirees, except in certain jurisdictions where Prudential will irrevocably guarantee and assume 100% of the benefit obligation.  This continues Jones Day’s history of representing plan sponsors in large and innovative pension de-risking transactions and other strategies that maintain pension security while advancing corporate goals and limiting financial risk.