Alcoa Corp. is de-risking roughly $315 million (US$235 million) in Canadian defined benefit pension obligations and assets with an annuity transfer.
The group annuity contracts will be executed by Industrial Alliance Insurance and Financial Services Inc., which will assume payments for roughly 500 participants in September, according to a press release.
This is the company’s sixth pension annuity transaction for a total transfer of roughly $3.6 billion in pension obligations and assets since 2018, noted the release.
In 2018, Alcoa entered into a deal with iA Financial Group, Desjardins Financial Security Life Assurance Co. and Sun Life Financial Inc. to transfer more than $700 million in Canadian DB pension obligations. And last August, Alcoa de-risked roughly US$1 billion in U.S. DB pension obligations and assets.