StockWatch
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Aerospace
OtherMar 30, 2026, 03:52 AM

RTX Corp to Transfer $2.5 Billion in Pension Obligations to Prudential, Expects $300 Million Charge

AI Summary

RTX Corporation is transferring approximately $2.5 billion of gross pension obligations from its RTX Consolidated Pension Plan to Prudential Insurance Company of America. This transaction will result in Prudential assuming responsibility for retirement benefits owed to approximately 60,000 retirees and beneficiaries, and RTX expects to recognize a one-time, non-cash pretax pension settlement charge of approximately $300 million in the fourth quarter of 2025.

Key Highlights

  • RTX initiated a buy-out conversion of a group annuity contract with Prudential.
  • Approximately $2.5 billion of gross pension obligations will be transferred.
  • Prudential will assume responsibility for benefits owed to approximately 60,000 retirees and beneficiaries.
  • RTX expects to recognize a one-time, non-cash pretax pension settlement charge of approximately $300 million in Q4 2025.
  • The transaction is expected to close by December 30, 2025.