Annuity buy-outs

An annuity buy-out is a traditional group annuity policy that transfers all risks and administration for a covered group of members from the plan sponsor to Sun Life.

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. The annuitants can include retirees as well as deferred members. Sun Life provides plan administration and member support including communications and a dedicated member service team.

Advantages for plan sponsors

  • Reduced pension volatility
  • Investment risk protection
  • Longevity risk protection
  • Benefit security
  • Potential for superior yields
  • Reduced administration

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People are living longer

Longevity insurance protects member pension benefits if they live longer than expected. 

Learn about longevity insurance

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