BMO will issue annuities covering pension benefits of 860 Yellow Pages pensioners and beneficiaries. BMO will begin administering all benefits from October. As a result of the transaction, the company expects to recognize a non-cash net settlement loss during the second quarter of 2025.

The transaction will see Yellow Pages halve its pension plan obligations. The purchase of the group annuity contracts will be funded directly by assets of the plan. Yellow Pages will also voluntarily contribute an additional $4 million to the pension plan by June next year.

"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 Chief Executive David Eckert.

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