Why IBM is paying $2.7 billion to this US-based insurance company

IBM is set to transfer a part of its pension plan obligations to a unit of Prudential Financial. Now, the company has announced that this transfer will result in a one-time charge of $2.7 billion in the third quarter. According to a report by the news agency Reuters, nearly $6 billion of IBM’s defined benefit pension obligations will be transferred to Prudential Insurance Company of America under this deal.