Public Service Enterprise Group Inc., Newark, N.J., signed a commitment to purchase a group annuity contract from Prudential Insurance Co. of America to transfer about $1 billion in U.S. pension plan liabilities.
The utility company said in its 10-Q filing with the SEC on Tuesday that it signed the commitment in July, and it will transfer the responsibility of paying benefits of about 2,000 retirees from "PSEG Power & Other, excluding Services (Participants)" to the insurer.
Prudential will be solely responsible for benefits due on or after Dec. 31, according to the filing.
As of Dec. 31, 2022, the company's pension plan assets — all U.S.-based — totaled $4.911 billion, while projected benefit obligations totaled $5.628 billion, for a funding ratio of 87.3%, according to its most recent 10-K filing.
PSEG officials could not be immediately reached for further information.