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Products December 9, 2011
SunLife Introduces Longevity Insurance for Pension Plans
December 9, 2011 (PLANSPONSOR.com) - Sun Life Financial has introduced longevity insurance designed to lessen life expectancy risk for companies that offer defined benefit (DB) pension plans to employees.
Reported by Rebecca Moore
Longevity insurance provides plan sponsors with protection from the extra pension costs that arise if their plan members live longer than expected – something that is a growing phenomenon. The introduction of longevity insurance completes a suite of products and services offered by Sun Life to de-risk pension plans for employers. Other solutions include annuity buy-outs, annuity buy-ins and customized liability-driven investment (LDI) portfolios.
Sun Life launched Defined Benefit Solutions in late 2008 to help Canadian companies more effectively manage risks in their DB plans. These solutions allow plan sponsors to mitigate DB risk or transfer a portion of the DB risk from their balance sheet to Sun Life and take advantage of the company’s investment, asset-liability management and longevity expertise.
Longevity insurance is issued by Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies.
“From a company perspective, longevity insurance reduces cash and earnings volatility, allowing management to focus its time and attention on running its core business,” said Brent Simmons, senior managing director, Defined Benefit Solutions, Group Retirement Services, Sun Life Financial Canada. “From a public policy and pensioner perspective, risk is transferred to a highly regulated insurance company, so plan members receive additional protection for their pensions.”« Employee Healthcare Costs a Major Concern Among Local Governments