Raytheon Reduces Pension Obligations

7/26/18

By Yoel Minkoff, SeekingAlpha

Raytheon (RTN -3.4%) is reducing its pension obligations by $923M by purchasing a group annuity contract from The Prudential Insurance Company of America, a subsidiary of Prudential Financial (PRU +1%).

The agreement transfers the responsibility for paying certain pension benefits to approximately 13,000 U.S. retirees, as well as their beneficiaries, from Raytheon’s previously discontinued operations.

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