General Motors Co., Detroit, purchased group annuity contracts transferring about C$1.8 billion ($1.4 billion) in Canadian pension plan liabilities from insurers Sun Life, iA Financial Group and Brookfield Annuity Co.
The automaker transferred the benefit-paying responsibilities to the insurers of about 6,000 participants of the salaried pension plan of General Motors of Canada Co. who retired before June 1, 2020, according to a Sun Life news release.
GM referenced the buyout transaction in a Feb. 10 regulatory filing, saying that it had "completed a $1.5 billion annuity purchase for salaried retirees in Canada," but did not provide further information. GM spokesman James Cain declined further comment.
Sun Life's portion of the annuity contract is C$1.1 billion, a spokeswoman for the insurer said, iA Financial's portion is about C$600 million according to spokesman Pierre Picard, and Brookfield Annuity's portion is about C$100 million, said Paul Forestell, Brookfield's president and CEO, in an email.
Sun Life is to begin paying benefits for its portion of the retiree population July 1, the spokeswoman said.
Josh Wozman, Willis Towers Watson spokesman, could not be immediately reached for further information.