annuity buyout – Benefits Canada.com https://www.benefitscanada.com Canada's most influential pension and benefits publication for decision-makers Fri, 17 May 2024 19:40:42 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.8 U.S. pension risk transfer sales premium increased 53% in Q4 2023: report https://www.benefitscanada.com/pensions/defined-benefit-pensions/u-s-pension-risk-transfer-sales-premium-increased-53-in-q4-2023-report/ Fri, 05 Apr 2024 13:00:37 +0000 https://www.benefitscanada.com/?p=153928 The total premium of U.S. pension risk transfer sales reached US$12.7 billion in the fourth quarter of 2023, a 53 per cent increase from the same period in 2022, according to a report by LIMRA. It found that pension risk transfer sales totalled $45.8 billion in 2023, down 13 per cent from 2022. There were […]

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]]> Group annuity market growing as DB pension plans move to de-risk https://www.benefitscanada.com/pensions/defined-benefit-pensions/group-annuity-market-growing-as-db-pension-plans-move-to-de-risk/ Thu, 21 Mar 2024 13:00:25 +0000 https://www.benefitscanada.com/?p=153313 Ford of Canada’s recent transfer of $923 million in pension liabilities to Desjardins Group, RBC Insurance and Sun Life Assurance Co. of Canada augurs well for what has been a rapidly expanding group annuity buyout and buy-in market. “As of 2013, the group annuity market amounted to about $1 billion annually,” says Charbel Assal, senior […]

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]]> Ford Canada transferring $923 million in pension liabilities via group annuity buyout https://www.benefitscanada.com/pensions/defined-benefit-pensions/ford-canada-transferring-923-million-in-pension-liabilities-via-group-annuity-buyout/ Thu, 22 Feb 2024 14:00:04 +0000 https://www.benefitscanada.com/?p=152217 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 […]

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]]> Competitive pension risk transfer costs declined from 101.8% to 100.5% in December: report https://www.benefitscanada.com/pensions/defined-benefit-pensions/competitive-pension-risk-transfer-costs-declined-from-101-8-to-100-5-in-december-report/ Thu, 15 Feb 2024 14:00:06 +0000 https://www.benefitscanada.com/?p=151954 The estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process decreased from 101.8 per cent of a plan’s accounting liabilities in November to 100.5 per cent of those liabilities in December, according to Milliman Inc.’s latest pension buyout index. The index uses the FTSE above median AA curve and […]

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]]> U.S. pension risk transfer sales increased 39% in Q3 2023: report https://www.benefitscanada.com/pensions/defined-benefit-pensions/u-s-pension-risk-transfer-sales-increased-39-in-q3-2023-survey/ Mon, 08 Jan 2024 14:00:39 +0000 https://www.benefitscanada.com/?p=149973 U.S. pension risk transfer sales increased by 39 per cent during the third quarter of 2023, according to a report by LIMRA. It found single premium buyout sales were US$8.1 billion, 69 per cent lower than this time last year. Year-to-date, buyout sales fell 30 per cent to $28.9 billion compared to 2022. There were […]

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]]> Competitive pension risk transfer costs increase from 101.1% to 101.9% in October: report https://www.benefitscanada.com/pensions/defined-benefit-pensions/competitive-pension-risk-transfer-costs-increase-from-101-1-to-101-9-in-october-report/ Wed, 22 Nov 2023 20:00:25 +0000 https://www.benefitscanada.com/?p=147539 The estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process increased from 101.1 per cent of a plan’s accounting liabilities in September to 101.9 per cent of those liabilities in October, according to Milliman Inc.’s latest pension buyout index. The index uses the FTSE above median AA curve and annuity […]

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]]> Majority of U.S. DB pension plan sponsors expect to divest liabilities over next 4 years: survey https://www.benefitscanada.com/pensions/defined-benefit-pensions/majority-of-u-s-db-pension-plan-sponsors-expect-to-divest-liabilities-over-next-4-years-survey/ Wed, 04 Oct 2023 19:00:18 +0000 https://www.benefitscanada.com/?p=144604 Nine in 10 (89 per cent) U.S. defined benefit pension plan sponsors say they’re expecting to completely divest their plan liabilities in roughly four years, according to a new survey by MetLife Inc. The survey, which polled 250 DB plan sponsors, found nearly all (94 per cent) said the financial impacts of volatility and related risks […]

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]]> Majority of U.K. DB pension plan sponsors favour annuity buyout as long-term strategy: survey https://www.benefitscanada.com/pensions/defined-benefit-pensions/majority-of-u-k-db-pension-plan-sponsors-favour-annuity-buyout-as-long-term-strategy-survey/ Tue, 15 Aug 2023 14:00:05 +0000 https://www.benefitscanada.com/?p=142117 More than half of U.K. defined benefit pension plan sponsors say they’d consider ways of securing benefits for their members beyond insurance-based solutions, according to a new survey by Aon. The survey, conducted during a recent webinar among 330 pension plan sponsors and trustees, asked which long-term strategy options they’d consider for their DB plan. Nearly two-thirds […]

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]]> Canadian annuity prices show asymmetrical response to interest rate shifts: experts https://www.benefitscanada.com/pensions/defined-benefit-pensions/canadian-annuity-prices-show-asymmetrical-response-to-interest-rate-shifts-experts/ Tue, 04 Jul 2023 13:00:32 +0000 https://www.benefitscanada.com/?p=140460 Canadian annuity prices have an asymmetrical response to changing interest rates, making it more expensive to de-risk defined benefit pension plans shortly after rates rise, according to new research. “In Canada, annuity providers are prompt when it comes to raising prices when interest rates go down and slower when interest rates go up,” says Mark […]

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]]> Vast majority of DB pension plan sponsors say inflation impacting decision to de-risk: survey https://www.benefitscanada.com/canadian-investment-review/db-investments/vast-majority-of-db-pension-plan-sponsors-say-inflation-impacting-decision-to-de-risk-survey/ Tue, 18 Oct 2022 13:00:01 +0000 https://www.benefitscanada.com/?p=128527 The vast majority (95 per cent) of defined benefit pension plan sponsors say higher inflation is impacting their decision to de-risk, with half (50 per cent) saying it’s very impactful, according to a new survey by MetLife Inc. The survey, which polled more than 250 DB pension plan sponsors with at least $100 million or more […]

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