Sept. 30 (Bloomberg) -- Prudential Financial Inc., the second-largest U.S. life insurer, agreed to take on $1.4 billion of pension liabilities from Bristol-Myers Squibb Co. as the drugmaker works to limit retirement obligations.
The deal cuts Bristol-Myers pension obligation to $3.6 billion from $5 billion, Ken Dominski, a company spokesman, said by e-mail.
Bristol-Myers will purchase a group annuity to cover 8,000 U.S. retirees and their beneficiaries, the New York-based pharmaceutical company said today in a statement.
Recommended For You
Employers such as Verizon Communications Inc., General Motors Co. and Motorola Solutions Inc. have turned to Prudential to reduce their pension liabilities. Firms have offloaded the obligations as low interest rates make it more difficult to generate returns on money set aside to cover future payouts.
“The transaction reduces risk in the plan and better manages the ongoing variations in cost associated with its maintenance,” Bristol-Myers said in the statement.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
