LifeWorks purchases buy-in annuity contracts for Stelco's Hamilton Works
Secures benefit entitlements of all plan participants; involves two Canadian insurers
TORONTO--(BUSINESS WIRE)-- LifeWorks, in its capacity as plan administrator, has purchased buy-in annuity contracts on May 31, 2022 for the Stelco Inc. Retirement Plan for USW Local 1005 Members at Hamilton Works (the "plan") in order to secure the benefit entitlements of all plan participants.
The complex transactions aimed at accomplishing various objectives, such as preserving the favourable financial position of the plan; ensuring fairness of treatment for all plan participants; and maximizing Assuris benefit protection.
Key highlights of the deal
- The structure of the deal, valued at $1.331 billion, involved two Canadian life insurance companies: Brookfield Annuity Company and Sun Life Assurance Company of Canada.
- The transaction covers 7,114 retirees and beneficiaries, deferred vested and active/transferred participants.
- The appointment of the insurers followed a thorough due diligence and selection process.
- The LifeWorks pension risk transfer and regulatory teams worked closely together on these transactions.
Comments from Al Kiel, senior partner, retirement and financial solutions, LifeWorks
"This is a great outcome for the Stelco Inc. Retirement Plan for USW Local 1005 Members at Hamilton Works and it’s a testament of our ability to successfully achieve the objectives of complex post restructuring appointments, while collaborating with all stakeholders for the plan, including the Financial Services Regulatory Authority of Ontario. Our risk management approach, our deep understanding of the pension risk transfer market and our strong governance structure are key success factors to achieve such outcomes."
Comments from Sarah Charef, senior consultant, investment and risk, LifeWorks
"Our team worked closely with the insurers to structure this deal and secure all plan members’ benefits. Transaction readiness was key to securing this timely deal.”
LifeWorks is a world leader in providing digital and in-person solutions that support the total wellbeing of individuals. We deliver a personalized continuum of care that helps our clients improve the lives of their people and by doing so, improve their business.
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