GUELPH, ON, Jan. 28, 2020 /CNW/ - The Co-operators and the Co-operative Superannuation Society (CSS) Pension Plan today announced a new longevity insurance agreement that will provide greater financial security to more than 6,300 CSS pensioners.
"CSS is very proud to have been providing an in-plan annuity option to our members for close to 50 years," said Martin McInnis, Executive Director of CSS. "Our agreement with Co-operators is a proactive and innovative approach that prudently protects our plan's annuity offering against longevity risk and positions CSS to continue to meet the retirement income needs of our members well into the future."
The CSS Pension Plan is a defined contribution plan that provides optional guaranteed lifetime retirement income. Under the new agreement, one of only three longevity deals announced in Canada, the CSS Pension Plan will transfer longevity risk for $660 million of pension plan liabilities to The Co-operators. In exchange for quarterly premium payments, The Co-operators will pay the actual pension benefit amounts to the plan on a quarterly basis and the CSS Plan will maintain full responsibility for monthly pension payments to pensioners.
"We're thrilled to have partnered with the Co-operative Superannuation Society (CSS) to develop a customized solution for their longevity risk," said Rob Wesseling, President and CEO, The Co-operators. "The Co-operators is well positioned to offer longevity solutions to the Canadian market, and we recognize this risk is a growing concern for Canadian retirees and pension plan providers throughout the country."
As the successful applicant in a competitive bid process, The Co-operators negotiated the terms of the customized insurance contract with Aon plc who advised the CSS Pension Plan. One of the unique features of the contract for a group of this size is the fact that it is expected to operate on a non-collateralized basis.
"I congratulate CSS on their foresight in considering the longevity risk faced by their members and taking action to address it. This agreement is a testimony to what can be achieved when there is a willingness to consider innovative solutions to improve member security" said William da Silva, Canadian national Director, Retirement Solutions at Aon. Aon advised CSS throughout all aspects of this transaction—from strategy to ultimate placement of the longevity insurance.
Aon plc (NYSE: AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
About The Co-operators:
The Co-operators Group Limited is a Canadian co-operative with more than $46.7 billion in assets under administration. Through its group of companies, it offers home, auto, life, group, travel, commercial and farm insurance, as well as investment products. The Co-operators is well known for its community involvement and its commitment to sustainability. The Co-operators is ranked as the Corporate Knights' #1 Best 50 Corporate Citizen in Canada and listed among the Best Employers in Canada by Aon Hewitt. For more information, visit www.cooperators.ca.
About CSS Pension Plan:
The CSS Pension Plan provides competitive, value-added retirement products and services exclusively to co-operative and credit union employees. Pioneered in 1939, it is one of the oldest and largest defined contribution pension plans in Canada with over $4 billion in assets under administration. Today, it has grown to serve over 330 employers and 48,000 current and past co-operative and credit union employees across Canada. For more information, visit www.csspen.com.
SOURCE The Co-operators