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Morneau Shepell purchases buy-in annuity contracts for Stelco's Hamilton Works

Secures benefit entitlements of all plan participants; involves four Canadian insurers

TORONTO, Aug. 27, 2019 /CNW/ - Morneau Shepell Ltd. in its capacity as Plan Administrator, has purchased several buy-in annuity contracts on July 9, 2019 for the Stelco Inc. Retirement Plan for Salaried Employees at Hamilton Works (the "Plan") in order to secure the benefit entitlements of all Plan participants.

The complex transactions aimed at accomplishing various objectives such as preserving the favourable financial position of the Plan; ensuring fairness of treatment for all Plan participants; and maximizing Assuris benefit protection.

"We are very pleased with this outcome since our appointment as Administrator of the Stelco Inc. Retirement Plan for Salaried Employees at Hamilton Works by the Financial Services Regulatory Authority of Ontario," said Al Kiel, senior vice president, retirement solutions, Morneau Shepell. "Our risk management approach in dealing with complex post restructuring appointments is a testament of our extensive experience in this space, and a reflection of our positive collaboration with all stakeholders for the Plan."

The structure of the deal, valued at $885 million, involved four reputable, highly rated, Canadian insurers: The Canada Life Assurance Company, Sun Life Assurance Company of Canada, BMO Life Assurance Company and Co-operators Life Insurance Company. The transaction covers 2,725 retirees and beneficiaries, deferred vested and active/suspended participants. The appointment of the insurers followed a thorough selection and due diligence process. Morneau Shepell's Pension Risk Transfer and Regulatory teams worked closely together on these transactions.

"Our team reengineered the structure of our pension risk transfer process and worked closely with insurers/reinsurers, which was a key differentiator for this transaction," said Benoît Labrosse, vice president, asset and risk management, Morneau Shepell. "In the past few years, the Canadian pension risk transfer market has evolved to make larger and more complex transactions possible for the benefits of our clients."

About Morneau Shepell
Morneau Shepell is the leading provider of technology-enabled HR services that delivers an integrated approach to well-being through our cloud-based platform. Our focus is providing everything our clients need to support the mental, physical, social and financial well-being of their people. By improving lives, we improve business. Our approach spans services in employee and family assistance, health and wellness, recognition, pension and benefits administration, retirement and benefits consulting, actuarial and investment services. Morneau Shepell employs approximately 6,000 employees who work with some 24,000 client organizations that use our services in 162 countries. Morneau Shepell is a publicly traded company on the Toronto Stock Exchange (TSX: MSI). For more information, visit morneaushepell.com.

SOURCE Morneau Shepell Inc.

For further information: Heather MacDonald, Morneau Shepell, media@morneaushepell.com, 855-622-3327