Verizon acquisition of Frontier would create firm with almost $50 billion in retirement plan assets

Verizon Communications Inc., New York, will acquire rival telecommunications firm Frontier Communications Parent Inc., Dallas, creating a combined firm with nearly $50 billion in retirement plan assets.

Verizon’s acquisition of broadband internet provider Frontier Communications, which is expected to close in 18 months, is an all-cash deal valuing the firm at $20 billion including debt, according to a joint Sept. 5 news release from the companies.

The news release does not disclose any plans regarding the companies’ retirement plans.

As of Dec. 31, Verizon’s defined benefit plan assets totaled $13.5 billion, according to its most recent 10-K filing with the SEC, and its 401(k) plan assets totaled $36.7 billion, according to its most recent 11-K filing.

Verizon’s DB plan assets have since been reduced through two group annuity contracts purchased through Prudential Insurance Co. of America and RGA Reinsurance to transfer about $5.9 billion in pension plan liabilities. The two insurers began paying benefits to participants on July 1.

As of Dec. 31, Frontier Communications’ DB plan assets totaled $2.3 billion, according to its most recent 10-K filing, and as of Dec. 31, 2022, its 401(k) plan assets totaled $2.5 billion, according to its most recent Form 5500 filing.