By Staff
Yellow Pages Ltd. is transferring roughly $210 million of its defined benefit pension plan obligations and related assets for certain retirees and beneficiaries to the BMO Life Assurance Co.
According to a press release, the agreement will see BMO issue annuities covering pension benefits for approximately 860 pensioners of the digital media company and their beneficiaries as of October 2025. The transaction is expected to reduce the company’s pension plan obligations by approximately 50%.
“We are pleased to have reached this agreement as it strengthens our balance sheet and lowers the risk from pension obligations, while allowing the pensioners and beneficiaries to receive equivalent pension benefits from BMO Insurance, a highly rated Canadian insurer with strong expertise in long-term management of retirement benefits,” said David A. Eckert, chief executive officer of the Yellow Pages, in the release. “The Company intends to reallocate the benefits of the reduced risk towards activities that will continue to ‘bend the revenue curve.'”
The agreement is expected to help de-risk the pension plan and protect investment gains and wind-up ratio, said the release, noting the purchase of the group annuity contracts will be funded directly by plan assets. The organization also said it intends to voluntarily contribute an additional $4M to the plan by the end of June 2026, subject to review by its board of directors. As a result of the transaction, Yellow Pages expects to recognize a non-cash net settlement loss during the second quarter of 2025.
Following the transaction, benefits for transferred plan participants will be protected under non-profit Assuris, an organization that protects Canadian policyholders if their life and health insurance company fails. Yellow Pages enlisted Telus Health as its advisor for the transaction.
