Sun Life Financial announces the first annuity buy-in deal with Husky Energy for active members in Canada
July 28, 2017
We are pleased to announce that Sun Life Financial completed a $45 million annuity buy-in deal with Husky Energy covering past and future benefits for active members, which we believe to be the first of its kind in Canada. The key challenge with transferring the risk of active members is the uncertainty around their benefits, as they are still accumulating them and have yet to begin receiving payments.
Husky Energy is considering winding up their plan in the next couple of years and wanted to buy annuities now to reduce their risk. We worked closely with Willis Towers Watson and the plan sponsor to develop a mechanism to cover future benefits.
"We were delighted to create an innovative solution for Husky Energy which achieved their objectives," said Brent Simmons, Senior Managing Director, Defined Benefit Solutions & Head, Sun Life Financial. "As more plan sponsors look to reduce their pension risk, the market is responding with creative ways to meet the sponsors' objectives and help them focus on their core business."
What does this deal mean for Canadian defined benefit plan sponsors?
- This same approach could help other plan sponsors looking to reduce the risk associated with their active or deferred members.
- Innovation continues to drive the Canadian de-risking market – so if you're a plan sponsor with any complex pension challenge, work with your consultant and insurer to explore your options.
Group annuities are provided by Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies.
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