June 26, 2017 – For 38% of defined benefit plan participants at The Hartford, benefit obligations will be transferred over to Prudential Financial, per a recent agreement between the two companies.
The Hartford will be purchasing a group annuity contract to transfer $1.6 billion—or 29% of the company’s $5.6 billion in U.S. qualified pension plan liabilities. Effective June 30, 2017, the move will hand over responsibility of present and upcoming pension benefits for nearly 16,000 past workers to Prudential. While the agreement means a shift in accountability, the change will not affect pension benefits for any participants.
Relocated participants to Prudential will be sent a notice from The Hartford by July’s close, and then receive detailed information from Prudential in mid-October. However, all participants will continue to collect pension benefits from The Hartford until November 1, 2017, when payment and administration will turn over to Prudential. Those participants unaffected will remain in The Hartford’s plan.
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