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The Co-operators has won a bid to take on $660 million in pension plan liabilities from the Co-operative Superannuation Society (CSS) Pension Plan.

According to a release, the arrangement — “one of only three longevity deals announced in Canada” — is designed to provide greater financial security for 6,300 CSS pensioners who have purchased annuities through the firm’s defined contribution plan.

In exchange for quarterly premiums, the Co-operators will assume $660 million in pension plan liabilities and pay pension benefit amounts to CSS on a quarterly basis. CSS will continue to make monthly payments to pensioners.

“Our agreement with Co-operators is a proactive and innovative approach that prudently protects our plan’s annuity offering against longevity risk and positions CSS to continue to meet the retirement income needs of our members well into the future,” Martin McInnis, executive director of CSS, said in a statement.

The arrangement is expected to operate on a non-collateralized basis, according to the release.

“The Co-operators is well positioned to offer longevity solutions to the Canadian market, and we recognize this risk is a growing concern for Canadian retirees and pension plan providers throughout the country,” said Rob Wesseling, president and CEO of the Co-operators.