Protection is Provided through the Purchase of Buy-in Annuities
TORONTO, June 17, 2022 /CNW/ - Pension benefits have been fully secured for the 7,114 members of United Steel Workers Local 1005 in Hamilton. The plan administrator, LifeWorks (Canada) Ltd., has purchased buy-in annuity contracts with two insurance companies valued at $1.331 billion. This deal ensures that all plan members will continue to receive their full benefits without interruption.
"This is great news for the plan's members and beneficiaries, and I want to congratulate all of those involved for working collaboratively to secure the plan's benefits and ensuring a seamless transition," said Caroline Blouin, FSRA Executive Vice President of Pensions. "Good pension plan administration enhances confidence in the ability of pension plans to support individuals and families well into their golden years."
In 2017, Financial Services Commission of Ontario (FSCO) appointed Morneau Shepell Ltd. (now LifeWorks), as plan administrator to oversee Stelco's five ongoing legacy defined benefit pension plans, following Stelco's restructuring plan under the Companies' Creditors Arrangement Act (CCAA) in 2016.
The Financial Services Regulatory Authority of Ontario (FSRA) has been working with LifeWorks since June 2019 when FSCO was dissolved.
Of Stelco's five defined benefit pension plans, this is the second plan that has purchased annuities to secure member benefits. The three remaining plans are working toward the same outcome.
The buy-in annuity contracts are investments of the plan and they will be converted to buy-out annuity contracts when the plan is ultimately wound up by FSRA.
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FSRA continues to work on behalf of all stakeholders, including consumers and pension plan members, to ensure financial safety, fairness, and choice for everyone.
SOURCE Financial Services Regulatory Authority of Ontario
For more information or to schedule an interview: Russ Courtney, Sr. Media Relations and Digital Officer, Financial Services Regulatory Authority, C: 437-225-8551, Email: [email protected]
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