Press Release

Prudential to Fulfill $6 Billion in Protected Retirement Obligations in Second Pension Risk Transfer with IBM

Issued by Prudential Financial, Inc.

Sept. 11, 2024

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

Under the terms of the transaction, the IBM Personal Pension Plan (the “Plan”) has purchased a single premium group annuity contract that transfers to The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc. (NYSE: PRU) approximately $6 billion of the Plan’s defined benefit pension obligations.

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.

This marks the second pension risk transfer agreement between Prudential and IBM. In 2022, Prudential was selected as one of two insurers for a $16 billion total pension risk transfer, making it the second-largest pension buy-out ever in the U.S. 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 U.S. 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.”

Since 1928, Prudential has been an innovator and leader in the pension risk transfer market, collaborating with clients to deliver solutions that help meet each organization’s unique de-risking needs and financial objectives. Prudential revolutionized the modern pension risk transfer market with its pioneering pension buy-outs with General Motors and Verizon in 2012. Many similar transactions followed, including most recently, PSEG, Shell USA, a second transaction with Verizon, and an industry-first, union-based multiemployer plan transaction with Sound Retirement Trust.

ABOUT PRUDENTIAL

Prudential Financial, Inc., a global financial services leader and premier active global investment manager with approximately $1.5 trillion in assets under management as of June 30, 2024, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise, and innovation for nearly 150 years.

The Retirement Strategies team at Prudential delivers industry-leading solutions to help protect the life’s work of more than 2.5 million individual and institutional customers and the people who rely upon them.¹ The business expands access to retirement security through its Individual Retirement protected growth and lifetime income strategies and its Institutional Retirement lines of business spanning U.S. Pension Risk Transfer, International Reinsurance, Stable Value, and Structured Settlements.

© 2024 Prudential Financial, Inc. and its related entities. Prudential, Prudential Retirement Strategies, the Prudential logo, the Rock symbol, and Rock Solid are service marks of PFI and its related entities, registered in many jurisdictions worldwide.

Insurance products are issued by The Prudential Insurance Company of America (PICA), Newark, New Jersey. PICA is a Prudential Financial company. PICA is solely responsible for its financial condition and contractual obligations.

¹As of June 30, 2024.

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