International Paper (NYSE:IP) will settle about $1.6B of its pension obligations by purchasing a group annuity contract from Prudential Financial's (NYSE:PRU) Prudential Insurance Company of America subsidiary.
As a result, Prudential will assume the responsibility for paying pension benefits to about 23,000 of International Paper's retirees.
The agreement is the second pension risk transfer between the two companies in just over a year.
Previously: Weyerhaeuser to reduce pension liabilities, boosts dividend (Aug. 24)
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