October 16, 2014
Prudential assumes pension liabilities to 30,000 Motorola Solutions retirees.
Willkie recently advised Prudential in its $3.1 billion pension risk transfer transaction with Motorola Solutions, Inc. The transaction is the third largest U.S. pension risk transfer transaction on record. Under the terms of this transaction, the Motorola Solutions Pension Plan has agreed to purchase a group annuity contract issued by The Prudential Insurance Company of America in exchange for a portfolio containing $3.1 billion in bonds and other assets. In 2015, Prudential will assume responsibility for the administration and payment of an estimated $4.2 billion of retirement benefits to the approximately 30,000 Motorola Solutions retirees covered by the contract.
The Prudential Insurance Company of America is the principal subsidiary of Prudential Financial, Inc., a financial services leader with more than $1.1 trillion of assets under management as of June 30, 2014 and operations in the United States, Asia, Europe, and Latin America. Through its subsidiaries and affiliates Prudential Financial offers a wide array of financial products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management, to individual and institutional customers through one of the largest distribution networks in the financial services industry.
The matter was handled by partner Vladimir Nicenko and associates Christian Ercole and Patrick Tedesco. Partner Donald B. Henderson, Jr. assisted on insurance regulatory matters.
