Rio Tinto's majority-owned subsidiary, Iron Ore Co. of Canada Inc., executed a pension risk transfer deal with Sun Life Financial Inc.
The buy-in group annuity deal, which is valued at more than C$560 million, covers over 3,700 retirees and beneficiaries. There will be no change to pension plan benefits for members.
The transaction helps reduce risks associated with the pension plan and secures the plan's strong financial position.
Morneau Shepell advised Iron Ore Co. of Canada in its capacity as plan administrator of the pension plan.