Morneau Shepell announced Aug. 27 that it has purchased several buy-in annuity contracts for the Stelco Inc. Retirement Plan for Salaried Employees at Hamilton Works.
The aim of the deal, valued at $885 million, is to secure the benefit entitlements of all Plan participants, stated Morneau Shepell, the Plan Administrator.
"We are very pleased with this outcome since our appointment as Administrator of the Stelco Inc. Retirement Plan for Salaried Employees at Hamilton Works by the Financial Services Regulatory Authority of Ontario," said Al Kiel, senior vice president, retirement solutions, Morneau Shepell. "Our risk management approach in dealing with complex post restructuring appointments is a testament of our extensive experience in this space, and a reflection of our positive collaboration with all stakeholders for the Plan."
Four insurers involved
The deal involved four Canadian insurers: Canada Life, Sun Life, BMO Life and Co-operators Life. The transaction covers 2,725 retirees and beneficiaries, deferred vested and active/suspended participants.
Morneau Shepell said the appointment of the insurers followed a thorough selection and due diligence process. Morneau Shepell's Pension Risk Transfer and Regulatory teams worked closely together on these transactions.
Pension risk transfer market
"Our team reengineered the structure of our pension risk transfer process and worked closely with insurers/reinsurers, which was a key differentiator for this transaction," said Benoît Labrosse, vice president, asset and risk management, Morneau Shepell. "In the past few years, the Canadian pension risk transfer market has evolved to make larger and more complex transactions possible for the benefits of our clients."