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International Business Machines Corp. is transferring roughly US$6 billion in defined benefit pension obligations through a group annuity buyout.
Prudential Financial Inc. will assume responsibility for making retirement benefit payments to roughly 32,000 retirees and their beneficiaries beginning Jan. 1, 2025.
Read: IBM entering US$16BN pension risk transfer
The transaction marks the second pension risk transfer agreement between IBM and Prudential Financial Inc., according to a press release, which noted the previous transfer, completed in 2022, covered nearly 100,000 retirees and beneficiaries and was valued at $16 billion.