Verizon said the company's Pension Plans entered into agreements with Prudential and RGA, under which the plans bought nonparticipating single premium group annuity contracts to settle about $5.9 billion of plan benefit liabilities, as of February 29, 2024.

1. 01

   Verizon said the company's Pension Plans entered into agreements with Prudential and RGA, under which the plans bought nonparticipating single premium group annuity contracts to settle about $5.9 billion of plan benefit liabilities, as of February 29, 2024.

2. 02

   The company said the group annuity contract purchase closed on March 6, 2024. The contracts mainly cover 56,000 retirees who began receiving benefits from the plans before January 1, 2023. Prudential and RGA will take over future payment obligations, with direct payments starting on July 1, 2024.

3. 03

   The company said Prudential and RGA will each assume 50% of the benefit obligation related to Transferred Participants. In certain jurisdictions, however, Prudential will assume 100% of the benefit obligation for Transferred Participants residing in those jurisdictions.

4. 04

   It said the purchase was funded directly from plan assets, and that it made additional contributions of about $365 million to the plans before the closing date. The company also said it expects to recognize a one-time non-cash pension settlement credit in Q1 2024, and that the actual amount will depend on finalizing actuarial assumptions and other factors.

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