Domtar Corporation today announced that it has entered into an agreement with Sun Life to purchase group annuity buy-out contracts and to transfer approximately CDN $360 million (US $271 million) in obligations and related assets from its defined benefit pension plans in Ontario, Canada. In addition, Domtar will convert approximately CDN $101 million (US $76 million) of existing buy-in annuities with existing insurers into buy-out annuities to complete the full transfer of these obligations. No cash contributions will be required by Domtar. The transactions will enable Domtar to reduce risk associated with volatility in the Company’s pension plan obligations and assets.
December 05, 2019