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.
Canadian Pension Risk Management
Brent Simmons discusses trends that will transform the Canadian pension de-risking market.
Association of Canadian Pension Management webinar
Heather Wolfe and Hugh Kerr provide update on 2015 trends in the Canadian pension risk transfer market
Quebec provides fuel for pension de-risking
Quebec released Bill 57, with changes that will impact private sector DB pension plans starting January 1, 2016.
- $2.6 billion in group annuity sales in 2015
- 40 annuity buy-ins transactions completed in Canada, covering $3.1 billion of liabilities as of March 31, 2016