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Ford of Canada is is transferring the longevity risk for $923 million in pension plan liabilities through a group annuity buyout.

RBC Insurance, Sun Life Assurance Co. of Canada and Desjardins Group will assume responsibility for making pension payments to 2,700 of the plan’s members, who retired on or prior to June 1, 2021.

Read: GM Canada transferring $1.8BN in pension liabilities via group annuity buyout

“Desjardins is pleased with this new partnership with Ford of Canada, in collaboration with RBC Insurance and Sun Life, which will reduce certain risks related to their group retirement plan and provide a stable and solid financial future for plan members,” said Marie-France Amyot, senior vice-president of Desjardins Group’s Insurance and Group Savings Division, in a press release.

WTW is advising on the annuity buyout transaction. “This transaction is part of a growing trend in the private sector, where plan sponsors can protect pension benefits for plan members and eliminate risk for the companies,” said Marco Dickner, the consultancy’s Canadian retirement risk management leader, in the release.

Read: Majority of U.K. DB pension plan sponsors favour annuity buyout as long-term strategy: survey