Stay updated with breaking news from Marco Dickner. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
Ford of Canada is is transferring the longevity risk for $923 million in pension plan liabilities through a group annuity buyout. RBC Insurance, Sun Life Assurance Co. of Canada and Desjardins Group will assume responsibility for making pension payments to 2,700 of the plan’s members, who retired on or prior to June 1, 2021. Read: GM Canada […]
After navigating the unpredictable markets of the past two decades, some defined benefit pension plan sponsors could be forgiven for wanting to seek out some certainty. But a new threat has emerged in the form of rapidly rising inflation and the possibility of rate increases after decades of persistent lows. The consumer price index increased […]
TORONTO, April 7, 2021 /CNW/ - Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company, in collaboration with Sun Life, iA Financial Group and Brookfield Annuity, today announced a group annuity buy-out transaction of CA$1.8 billion for over 6,000 members of the General Motors of Canada Company salaried pension plan who retired prior to June 1, 2020. Marco Dickner, Retirement Risk Management Leader, Canada, at Willis Towers Watson, said "This deal is ground-breaking because it demonstrates that Canadian insurers can now effectively meet plan spons...
Staff General Motors of Canada Co. is transferring the longevity risk for $1.8 billion in pension plan liabilities through a group annuity buyout. Jennifer Wright, director of communications at GM Canada, said in a statement that the automaker has been taking steps to reduce risk and strengthen its retirement plans with a view to protecting the pension benefits of members. “Moving these retired members to insurance companies helps to support the protection the pension benefits of these retirees into the future, while remaining members continue to enjoy a well-funded plan.” The transactio...
Longevity risk an increasing concern In recent years, Canadian DB plan sponsors have increased their focus on risk management and, while investment risk may be their biggest concern, longevity risk isn’t far behind, says Simmons. “Over the last 40 years, the assumptions that a typical pension plan has been using to estimate how long their plan members are going to live have changed a number of times. The result has been, for a typical pension plan, a 25 to 30 per cent increase in liabilities.” Two examples of Canadian DB pension plans transferring their longevity risk through annuity bu...