RTX Corporation Reports $2.5 Billion Pension Obligation Transfer and $300 Million Settlement Charge
Summary
RTX Corporation initiated a buy-out conversion of a group annuity contract on November 7, 2025, transferring approximately $2.5 billion of gross pension obligations from its Plan to The Prudential Insurance Company of America. This transaction involves Prudential assuming responsibility for benefits owed to about 60,000 retirees and beneficiaries, without requiring additional funding from RTX. - The Plan's funded status will not diminish. - RTX expects a one-time, non-cash pretax pension settlement charge of approximately $300 million in the fourth quarter of 2025. - The transaction is expected to close by December 30, 2025.
Why It Matters
This transaction is material as it transfers approximately $2.5 billion in pension obligations, reducing RTX's future pension risk and administrative burden. Investors should note the expected one-time, non-cash pretax pension settlement charge of approximately $300 million in Q4 2025.
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Key Quote
“On November 7, 2025, RTX Corporation (the "Company") initiated a buy-out conversion of a group annuity contract purchased by the RTX Consolidated Pension Plan (the "Plan") from The Prudential Insurance Company of America ("Prudential").”
— From Item 8.01
Filing Details
Reported Items
Additional Information
- CIK Number
- 0000101829
- Filing Date
- Thursday, November 13, 2025
- Filing Time
- 12:00 AM UTC
- Form Type
- 8-K
- Materiality Level
- high
- Sentiment
- neutral