Yellow Pages Limited announced Wednesday it has purchased group annuity contracts worth approximately $210 million to transfer a significant portion of its pension plan obligations to BMO Life Assurance Company.
The Montreal-based digital media and marketing company said the transaction will transfer pension benefits for about 860 pensioners and beneficiaries, representing roughly 50 per cent of its pension plan obligations.
Under the agreement, BMO Insurance will begin administering all benefits to these members starting in October 2025, with no changes to the pension benefits for plan participants.
“We are pleased to have reached this agreement as it strengthens our balance sheet and lowers the risk from pension obligations,” said David A. Eckert, CEO of Yellow Pages Limited.
Protecting pension benefits
The company said benefits for transferred plan participants will be protected under Assuris, the life insurance compensation association designated under the Insurance Companies Act of Canada.
The purchase of the group annuity contracts will be funded directly by assets of the pension plan. Yellow Pages also plans to voluntarily contribute an additional $4 million to the pension plan by the end of June 2026, subject to board review.
Financial impact expected
As a result of the transaction, the company expects to recognize a non-cash net settlement loss during the second quarter of 2025.
The move aligns with Yellow Pages’ strategy to reduce risk in its pension plan and protect realized investment gains and wind-up ratio, the company said. TELUS Health acted as advisor to Yellow Pages in this transaction.
Yellow Pages Limited, which trades on the Toronto Stock Exchange under the symbol Y, operates online properties including YP.ca, Canada411 and 411.ca, as well as corresponding mobile applications and print directories.
