GreenFirst Forest Products has purchased a buy-out group annuity contract that transfers approximately C$26.5m of defined benefit pension obligations to an un-named Canadian insurance company.
Under the group annuity transaction, the Canadian insurance company will have the responsibility of paying pension benefits. This includes payments to current pensioners and beneficiaries already receiving payments, as well as former employees who are entitled to a deferred pension that will begin when they retire.
The Canadian insurance company will begin administering the pensions covered by the group annuity in November 2024.
“We are excited to share this significant development, which not only reduces the risk associated with pension obligations but also ensures that pension plan members covered by the group annuity continue to receive the same pension benefit from a highly rated insurance company with extensive expertise in providing lifetime pensions to Canadian retirees,” said Joël Fournier, CEO at GreenFirst.
TELUS Health acted as advisor to GreenFirst on the transaction.
