Domtar Corp. is entering into an agreement with Sun Life Financial for a group annuity buyout.

The transactions will transfer about $360 million in obligations and related assets from the paper mill company’s defined benefit plans in Canada over to the insurer.

Read: Rayonier Advanced Materials pension taking on annuity buyout

In addition, it will convert about $101 million of existing buy-in annuities with existing insurers into buyout annuities to complete the full transfer of these obligations. The annuity buyout transactions will transfer responsibility for pension benefits for roughly 1,265 Domtar retirees and spouses in receipt of survivor pensions.

The insurance companies will begin making benefit payments to the affected retirees and spouses on March 1, 2020.

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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