Bristol-Myers Squibb to Transfer $1.4 Billion in U.S. Pension Obligations to Prudential
01 October 2014 - 7:00AM
Business Wire
- Transfers liabilities and related
assets for approximately 8,000 U.S. retirees and their
beneficiaries
- Benefits entrusted to a global
financial institution with expertise in long-term management of
retirement benefits
Bristol-Myers Squibb Company (NYSE:BMY) today announced it will
settle $1.4 billion in pension obligations through the purchase of
a group annuity contract from The Prudential Insurance Company of
America (Prudential) (NYSE:PRU) for approximately 8,000 U.S.
retirees and their beneficiaries who started receiving their
monthly retirement benefit payments on or before June 1, 2014.
Bristol-Myers Squibb’s U.S. Retirement Plan (“the Plan”) is in a
strong financial position, and the obligations associated with this
transaction will require no additional cash contributions by the
company. There will be no change to the monthly retirement benefit
payments currently received by retirees and their beneficiaries.
All other plan participants will stay in the company’s Plan, which
is well-funded to ensure benefit payments to future retirees and
beneficiaries.
The transaction reduces risk in the Plan and better manages the
ongoing variations in cost associated with its maintenance while
entrusting current retirees and their beneficiaries’ pensions to a
financial institution with expertise in the long-term management of
retirement benefits.
Bristol-Myers Squibb is committed to the long-term financial
health of the Plan and has taken steps to protect all participants
of the Plan. As part of this transaction, the company’s Pension
Committee engaged Fiduciary Counselors Inc., a leading independent
fiduciary services firm, to represent the Plan and all of its
participants and their beneficiaries, including those remaining in
the Plan, to objectively select the safest available annuity as
defined by the U.S. Department of Labor standards. Fiduciary
Counselors selected a Prudential contract that provides an
additional safeguard by segregating assets in a separate account
dedicated to the payment of benefits to plan retirees and their
beneficiaries.
All other participants and their beneficiaries in the company’s
Plan with accrued benefits will remain in the current Plan,
including retirees who participate in collectively bargained plans
or the Puerto Rico plan as well as certain retirees with variable
benefit payments. The transfer to Prudential is expected to occur
in December 2014 and is subject to satisfaction of closing
conditions. Upon completion of the transfer, Prudential will assume
full financial responsibility for making the annuity payments
provided under the group annuity contract.
Retirees and beneficiaries who will transfer to Prudential will
be receiving individualized information packages with further
details and answers to frequently asked questions.
About Bristol-Myers Squibb
Bristol-Myers Squibb is a global biopharmaceutical company whose
mission is to discover, develop and deliver innovative medicines
that help patients prevail over serious diseases. For more
information, please visit www.bms.com or follow us on Twitter at
http://twitter.com/bmsnews.
About Prudential
Prudential Retirement delivers retirement plan solutions for
public, private, and non-profit organizations. Services include
defined contribution, defined benefit and non-qualified deferred
compensation record keeping, administrative services, investment
management, comprehensive employee education and communications,
and trustee services, as well as a variety of products and
strategies, including institutional investment and income products,
pension risk transfer solutions and structured settlement services.
With over 85 years of retirement experience, Prudential Retirement
helps meet the needs of over 4.0 million participants and
annuitants. Prudential Retirement has $330.5 billion in retirement
account values as of June 30, 2014.
Prudential Financial, Inc. (NYSE:PRU), a financial services
leader with more than $1.1 trillion of assets under management as
of June 30, 2014, has operations in the United States, Asia,
Europe, and Latin America. Prudential’s diverse and talented
employees are committed to helping individual and institutional
customers grow and protect their wealth through a variety of
products and services, including life insurance, annuities,
retirement-related services, mutual funds and investment
management. In the U.S., Prudential’s iconic Rock symbol has stood
for strength, stability, expertise and innovation for more than a
century. For more information, please visit
www.news.prudential.com.
Retirement products and services are provided by Prudential
Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, or
its affiliates.) Insurance products are issued by The Prudential
Insurance Company of America (PICA), Newark, NJ, a Prudential
Financial company solely responsible for its financial condition
and contractual obligations.
Bristol-Myers Squibb Forward-Looking Statement
This press release contains "forward-looking statements" as that
term is defined in the Private Securities Litigation Reform Act of
1995. Such forward-looking statements are based on current
expectations and involve inherent risks and uncertainties,
including factors that could delay, divert or change any of them,
and could cause actual outcomes and results to differ materially
from current expectations. No forward-looking statement can be
guaranteed. Among other risks, there is no guarantee that the
transaction will occur on the terms or within the time frame
described in this release. Forward-looking statements in this press
release should be evaluated together with the many risks and
uncertainties that affect Bristol-Myers Squibb's business,
including those identified in Bristol-Myers Squibb's Annual Report
on Form 10-K for the year ended December 31, 2013, in our Quarterly
Reports on Form 10-Q and our Current Reports on Form
8-K. Bristol- Myers Squibb undertakes no obligation to
publicly update any forward-looking statement, whether as a result
of new information, future events or otherwise.
Bristol-Myers SquibbMedia:Laura Hortas,
609-252-4587, laura.hortas@bms.comKen Dominski, 609-252-5251,
ken.dominski@bms.comorInvestors:Ranya Dajani, 609-252-5330,
ranya.dajani@bms.comRyan Asay, 609-252-5020,
ryan.asay@bms.comorPrudential Financial,
Inc.Media:Tanya Valle, 973-802-4370,
tanya.valle@prudential.comJosh Stoffregen, 973-802-3996,
josh.stoffregen@prudential.com
Bristol Myers Squibb (NYSE:BMY)
Historical Stock Chart
From Apr 2024 to May 2024
Bristol Myers Squibb (NYSE:BMY)
Historical Stock Chart
From May 2023 to May 2024