Ontario Auto Workers Severance & Pension Options (2026)
Ontario Auto Sector Layoffs
Compare your options if you've been affeted by auto workers layoffs at GM, Ford or Stellantis which includes company pension, lump sum and copycat annuity.
Understanding Your Options
If you're affected by layoffs, you typically have 3 main options available to you. Each option comes with different levels of income, flexibility and market risk.
1. Company Pension
- Guaranteed Income
- No Control
- No estate value
2. Lump Sum (Commuted Vale)
- Large upfront payment
- Requires investing
- Market risk
3. Transfer to an Annuity (copycat annuity)
- Replaces pension income
- Guaranteed for life
- Can include spouse protection
Pension vs Lump Sum vs Annuity
| Company Pension | Lump Sum | Copycat Annuity | |
|---|---|---|---|
| Monthly Income | Stable | Variable | Stable |
| Risk Level | Low | High | Low |
| Flexibility | None | High | Medium |
| Estate Value | None | Yes | Optional |
What is a Copycat Annuity?
The word “copycat” is used to refer to a life annuity that is purchased to replace the income from a Defined Benefit plan from your employer, where your employer provides a monthly income upon retirement.
3 Key Features of a Copycat Annuity
- 1. Exact Copy: With a copycat annuity you get the same or slightly higher monthly income to those of your employer's.
- 2. Protection From Default: Transferring your employer's pension benefits to a high credit rated insurance company, you'll eliminate the risk of losing your pension to bankruptcy or financial problems.
- 3. Federal & Provincial Regulations: Copycat annuities are regulated by the Canadian federal and provincial insurance regulators, making sure that the insurance company is financial stable.
Auto Workers Severance Overview
| GM CAMI | Ford | Stellantis | |
|---|---|---|---|
| Layoff Context | Production changes | EV transition | Restructuring |
| Severance Packages | ~6.5 months pay (varies) | Varies by package | Varies by package |
| Pension Options | Yes | Yes | Yes |
| Lump Sum Available | Yes | Yes | Yes |
| Annuity Option | Yes | Yes | Yes |
Case Study of a Copycat Annuity
A General Motors retiree chooses a copycat annuity to make his income stronger.
Dave Anderson from St. Catherines, Ontario retired from General Motors of Canada after 35 years of employment decided to transition his pension to a copycat annuity. To read full story, click here.
Source: The Globe and Mail — Alexandra MacQueen
Copycat Annuity Form
Complete our Copycat Annuity Form and we'll provide you with a quote and help you transfer your employer's pension to a copycat annuity.