All plan members will continue to receive their full benefits as a result of annuity agreement
The 7,114 members of United Steel Workers Local 1005 in Hamilton can now expect their pension benefits to be fully secured, according to the Financial Services Regulatory Authority of Ontario (FSRA).
LifeWorks (Canada) Ltd., the plan's administrator, has paid $1.331 billion to two insurance companies for buy-in annuity contracts, allowing all plan members to continue to receive their full benefits
"This is great news for the plan's members and beneficiaries, and I want to congratulate all of those involved for working collaboratively to secure the plan's benefits and ensuring a seamless transition," said Caroline Blouin, FSRA Executive Vice President of Pensions. "Good pension plan administration enhances confidence in the ability of pension plans to support individuals and families well into their golden years."
Following Stelco's reorganization plan under the Companies' Creditors Arrangement Act (CCAA) in 2016, the Financial Services Commission of Ontario (FSCO) designated Morneau Shepell Ltd. (which has since rebranded to LifeWorks) as plan administrator to supervise the company's five legacy defined benefit pension plans.
Since June 2019, when FSCO was liquidated, the Financial Services Regulatory Authority of Ontario (FSRA) has been working with LifeWorks.
This is the second of Stelco's five defined benefit pension plans to acquire annuities to secure member benefits. The remaining three proposals are all aiming for the same result.
The buy-in annuity contracts are the plan's investments, and they will be converted to buy-out annuity contracts when FSRA closes the plan.
