Repeat buyers: plan sponsors are expanding their partnerships with insurers
Over 300 DB plan sponsors have purchased group annuities to de-risk their DB pension plans in the past 5 years. In 2021, of the 70+ plan sponsors who purchased group annuities, more than 15 had previously purchased annuities making them repeat buyers.
For example, LifeWorks has secured pension benefits for members of two Stelco Inc. Retirement Plans in the past three years:
- 2019 – Morneau Shepell Ltd., in its capacity as plan administrator, purchased buy-in annuity contracts for Stelco Inc. Retirement Plan for Salaried Employees at Hamilton Works.
- 2022 – LifeWorks, in its capacity as plan administrator, purchased buy-in annuity contracts valued at $1.3B for the Stelco Inc. Retirement Plan for USW Local 1005 Members at Hamilton Works.
Read more about each transaction.