PRUDENTIAL FINANCIAL INC
For the period ended Jun 30, 2025. Filed Jul 31, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 31, 2025
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16. Employee Benefit Plans
- EMPLOYEE BENEFIT PLANS
Pension and Other Postretirement Plans
The Company has funded and non-funded non-contributory defined benefit pension plans (“Pension Benefits”), which cover substantially all of its employees. For some employees, benefits are based on final average earnings and length of service (the “traditional formula”), while benefits for other employees are based on an account balance that takes into consideration age, length of service and earnings during their career (the “cash balance formula”).
The Company provides certain health care and life insurance benefits for its retired employees, their beneficiaries and covered dependents (“Other Postretirement Benefits”). The health care plan is contributory; the life insurance plan is non-contributory. Substantially all of the Company’s U.S. employees may become eligible to receive certain other postretirement benefits if they retire after age 55 with at least 10 years of service or under certain circumstances after age 50 with at least 20 years of continuous service.
Net periodic (benefit) cost included in “General and administrative expenses” includes the following components:
| Three Months Ended June 30, | ||||
|---|---|---|---|---|
| Pension Benefits | Other Postretirement Benefits | |||
| 2025 | 2024 | 2025 | 2024 | |
| (in millions) | ||||
| Components of net periodic (benefit) cost: | ||||
| Service cost | $47 | $51 | $2 | $2 |
| Interest cost | 141 | 135 | 14 | 13 |
| Expected return on plan assets | (249) | (239) | (18) | (19) |
| Amortization of prior service cost | 0 | (1) | (17) | (17) |
| Amortization of actuarial (gain) loss, net | 21 | 23 | 2 | 2 |
| Settlements | 0 | 1 | 0 | 0 |
| Special termination benefits | 0 | 1 | 0 | 0 |
| Net periodic (benefit) cost | $(40) | $(29) | $(17) | $(19) |
| Six Months Ended June 30, | ||||
| Pension Benefits | Other Postretirement Benefits | |||
| 2025 | 2024 | 2025 | 2024 | |
| (in millions) | ||||
| Components of net periodic (benefit) cost: | ||||
| Service cost | $94 | $103 | $3 | $4 |
| Interest cost | 282 | 270 | 28 | 26 |
| Expected return on plan assets | (498) | (477) | (36) | (38) |
| Amortization of prior service cost | 0 | (1) | (34) | (34) |
| Amortization of actuarial (gain) loss, net | 42 | 45 | 5 | 4 |
| Settlements | (1) | 1 | 0 | 0 |
| Special termination benefits | 0 | 1 | 0 | 0 |
| Net periodic (benefit) cost | $(81) | $(58) | $(34) | $(38) |
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