What is an annuity buy-out?
A traditional group annuity policy that transfers all the risks for a group of members from the plan sponsor’s balance sheet to Sun Life’s balance sheet.
How do annuity buy-outs work?
In exchange for a lump sum premium, Sun Life assumes responsibility for making pension payments to the covered group (which can include retirees and deferred members) and issues individual certificates to each member. We provide administration services and communications support, including a member call centre and distribution of annual tax forms directly to members
What are the advantages of annuity buy-outs for sponsors?
- Reduced pension volatility
- Investment risk protection
- Longevity risk protection
- Benefit security
- Potential for superior yields
- Reduced administration
Access our annuity buy-out solution sheet.
Where to start?
Access our annuity quote data requirements.
Contact us for more information.
The insider's guide to the Canadian annuity market
An inside scoop on market dynamics, annuity pricing and practical tips to get the best price.
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Heather Wolfe provided highlights of the evolution of the risk transfer market.
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Heather Wolfe joined a panel of experts to provide insights on buying annuities to de-risk.
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- $2.6 billion in group annuity sales in 2015
- 45 annuity buy-in transactions completed in Canada, covering $3.3 billion of liabilities as of September 30, 2016