IBM and Prudential have entered into a $6bn single premium group annuity contract, the second deal between the two firms.
Prudential will assume responsibility for making retirement benefit payments to the transaction’s population of approximately 32,000 retirees and their beneficiaries beginning Jan. 1, 2025.
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 market. 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,” said Julia Senchak, head of US Pension Risk Transfer at Prudential Retirement Strategies.
“Our deep commitment and expertise in flawlessly transitioning and administering benefit promises will provide participants with exceptional service and retirement security.”