LifeWorks announced that it has completed the purchase of buy-in annuity contracts from Sun Life Assurance Company of Canada and Brookfield Annuity Company, to help the Stelco Inc. retirement plan for USW Local 1005 members at Hamilton Works. Valued at $1.331-billion, the transaction is designed to help the retirement plan preserve its favourable financial position.
The Financial Services Regulatory Authority of Ontario (FSRA) issued its own statement regarding the transaction, saying the deal ensures that all plan members will continue to receive their full benefits without interruption.
“In 2017, Financial Services Commission of Ontario (FSCO, FSRA’s predecessor organization), appointed Morneau Shepell Ltd., now LifeWorks, as plan administrator to oversee Stelco’s five ongoing legacy defined benefit pension plans, following Stelco’s restructuring plan under the Companies’ Creditors Arrangement Act in 2016,” they write. “FSRA has been working with LifeWorks since June 2019 when FSCO was dissolved.”
They add that of Stelco’s five defined benefits plans, this is the second plan to purchase annuities to secure member benefits. “The three remaining plans are working towards the same outcome.” The buy-in annuity contracts are investments of the plan for now. FSRA says they will be converted to buy-out annuity contracts when the plan is ultimately wound up by the regulator.
