According to the official Pirates Twitter, the Pirates and Joel Hanrahan have come to terms on a contract, thus avoiding the arbitration process.
It is apparently a 1-year contract worth $4.1MM, according to Keith Law. He will earn $10,000 if he finishes 40 games, another $10,000 if he finishes 45 games. He will get $15,000 if he finishes 50 games and another $15,000 if he finishes 60 games. Matt Schwartz projected Hanrahan to get $4M if he went to arbitration, so this figure is not far off. This raise comes one day after Hanrahan was married in Texas.