TORONTO, March 3, 2015 /PRNewswire/ - Sun Life
Financial Inc. (TSX/NYSE: SLF) and BCE Inc. (TSX/NYSE: BCE) today
announced a new agreement that further advances BCE's pension
de-risking strategy by transferring longevity risk for $5 billion of pension plan liability to Sun Life
Assurance Company of Canada (Sun Life).
Under this new longevity insurance agreement, the first of its
kind in North America, the Bell
Canada Pension Plan will pay monthly premiums to Sun Life and in
exchange Sun Life will make monthly pension payments into the plan
for the lifetime of existing pensioners. BCE maintains full
responsibility for the Bell pension plan and related payments to
pensioners. Canada's largest communications company, BCE currently
provides both defined benefit and defined contribution pension
plans.
"Our agreement with Sun Life is another prudent step that BCE is
taking to provide greater protection and improved security for
Bell Canada pensioners," said
Siim Vanaselja, Chief Financial
Officer for BCE and Bell Canada.
"This agreement is an innovative way to de-risk pension obligations
by taking proactive measures to guard against longevity risk
without the requirement for additional cash contributions."
"Sun Life is thrilled to have been chosen by Bell to provide
this important solution for their defined benefit pension plan,"
said Kevin Dougherty, President, Sun
Life Financial Canada. "With our expertise in assessing and
managing the financial risks that can impact defined benefit plans,
Sun Life is perfectly positioned to help BCE and other Canadian
companies take longevity risk off the table so they can focus even
more on their core businesses."
Sun Life will reinsure a portion of the longevity risk to RGA
Canada and SCOR Global Life.
About Sun Life Financial
Celebrating 150 years in 2015, Sun Life Financial is a leading
international financial services organization providing a diverse
range of protection and wealth products and services to individuals
and corporate customers. Sun Life Financial and its partners have
operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong
Kong, the Philippines,
Japan, Indonesia, India, China,
Australia, Singapore, Vietnam, Malaysia and Bermuda. As of December
31, 2014 the Sun Life Financial group of companies had total
assets under management of $734
billion. For more information please visit www.sunlife.com
Sun Life Financial Inc. trades on the Toronto (TSX), New
York (NYSE) and Philippine (PSE) stock exchanges under the
ticker symbol SLF.
Note to editors: All figures in Canadian dollars.
SOURCE Sun Life Financial Inc.