The Prudential Insurance Company of America has been selected in
an industry-first multiemployer plan pension risk transfer (PRT),
to fulfill retirement benefit promises for the Sound Retirement
Trust, a Seattle-based joint labor-management board of trustees
that provides grocery workers of contributing employers with
retirement benefits.
The transaction will settle approximately $221 million of Sound
Retirement Trust pension liabilities and provide added retirement
security for approximately 8,700 retirees and their
beneficiaries.
“Prudential is proud to help protect the life’s work of these
Sound Retirement Trust retirees, who literally spent their careers
helping to feed Americans,” said Glenn O’Brien, head of
Institutional Retirement Strategies Distribution at Prudential. “We
are excited for the opportunity to apply Prudential’s deep
retirement experience and leadership to help these individuals have
a secure retirement, so they can live a better life, longer.”
Multiemployer pension plans, like the one sponsored by the board
of trustees of Sound Retirement Trust, are retirement programs
jointly offered by contributing employers and labor unions and are
often referred to as Taft-Hartley plans. The Taft-Hartley Act of
1947 allows employers in the same industry, such as construction or
transportation, or in this case, the retail food industry, to
contribute to a retirement plan for union members based on a
collective bargaining agreement. Under these plans, union workers
can transfer from job to job with minimal disruption in retirement
plan participation, as long as their employers have bargained to
contribute to the same retirement plan.
“The decision to purchase a group annuity contract to cover
8,700 United Food and Commercial Workers (UFCW) retirees of the
Sound Retirement Trust was determined over a year of careful due
diligence and deliberation,” said union trustee and president of
UFCW Local 3000, Faye Guenther. “Prudential was selected because of
its historic track record as one of the safest annuity providers to
guarantee pension benefit payments in the United States.”
“The thoughtful approach by the board of trustees resulted in a
win-win for their retirees. The retirees who will receive payments
from Prudential benefit from having their benefits secured by one
of the leading providers in the PRT industry,” said Michael Clark,
chief commercial officer at Agilis and annuity placement consultant
to the board for this transaction. “For the participants that
remain in the multiemployer plan, they benefit from the improved
net cash flow and reduced funded status risk.”
Under the terms of the agreement in this transaction, The
Prudential Insurance Company of America, a subsidiary of Prudential
Financial, Inc. (NYSE: PRU) will assume responsibility for paying
retirement benefits to this transaction’s population of Sound
Retirement Trust retirees and their beneficiaries beginning Sept.
1, 2024.
Prudential has been an innovator and leader in the pension risk
transfer market since 1928, collaborating with clients to deliver
solutions that meet each organization’s unique needs to help them
de-risk and meet their financial objectives.
Prudential revolutionized the modern pension risk transfer
market with its pioneering pension buyouts with General Motors and
Verizon in 2012. Many similar transactions followed, including HP
Inc. in 2021, IBM in 2022 and, most recently, Shell USA and a
second transaction with Verizon in 2024.
ABOUT PRUDENTIAL
Prudential Financial, Inc. (NYSE: PRU), 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. For more
information, please visit news.prudential.com.
With nearly 100 years of retirement experience, the Retirement
Strategies team at Prudential delivers industry-leading solutions
for growth and protection to more than 2.5 million individual and
institutional customers.1 The business expands access to retirement
security through its Individual Retirement protected accumulation
and income strategies and its Institutional Retirement lines of
business spanning U.S. Pension Risk Transfer, International
Reinsurance, Stable Value, and Structured Settlements.
1 As of June 30, 2024.
© 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.
ABOUT SOUND RETIREMENT TRUST
The Sound Retirement Trust provides employees across Washington
state with benefits for their retirement through a defined benefit
pension plan. The Sound Retirement Trust is sponsored and
administered by a joint labor-management board of trustees. The
members of UFCW 3000 are over 50,000 members working in grocery,
retail, health care, and other industries across Washington state,
northeast Oregon, and northern Idaho. UFCW 3000 is a chartered
member of UFCW International with over 1.4 million workers in North
America.
ABOUT AGILIS
Agilis provides actuarial and investment consulting using a
strategic approach to create innovative solutions for its clients,
leading them on the journey through implementation. Focused on
solutions entailing outsourced CIO (OCIO), actuarial and investment
consulting, derivatives management, specialty investment management
strategies, pension administration services, annuity buyouts and
plan terminations, and pooled employer 401(k) consulting, Agilis
finds dynamic solutions that create financial momentum for its
clients and create breakthrough strategies to seize growth
opportunities. For more information, please visit agilis.llc.
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version on businesswire.com: https://www.businesswire.com/news/home/20240828891562/en/
MEDIA CONTACT – PRUDENTIAL Claire Currie 973-802-4040
claire.currie@prudential.com
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