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Annuity buy-in

How do annuity buy-ins work?

In exchange for monthly premiums, Sun Life makes monthly pension payments into the plan for the lifetime of the covered pensioners. The monthly premiums are determined at contract inception and are locked in. Even if pensioners live longer than expected, Sun Life’s monthly payments will cover the difference. 1

What are the advantages of annuity buy-ins for plan sponsors?

Annuity buy-ins provide most of the same great benefits as annuity buy-outs, along with added flexibility for plan sponsors.

  • No top-up contribution
  • No accounting settlement1
  • Option to convert to annuity buy-out
  • Invisible to retirees
  • Flexibility to purchase during wind-up

1Plan sponsors should confirm the need for an accounting treatment settlement with their own auditors

Annuity Facts

$5.2 billion in group annuity sales in 2019

112 annuity buy-in transactions sold in Canada, covering $9.3 billion of liabilities as of March 31, 2020