Most nearing retirement will need to make ‘significant’ lifestyle cuts

By Craig Lord Source: Global News Canada A wave of Canadians gearing up for retirement will be forced to make “significant” cuts to live comfortably for the rest of their lives, an analysis from Deloitte Canada shows. The report released Wednesday looked at the finances of 4,000 Canadians between 55 and 64 years old to gauge their “retirement readiness.” Hwan Kim, a partner at Deloitte Canada, notes this group is particularly large right now with three million Canadians in [...]

2023-11-30T16:50:25-08:00November 29th, 2023|Categories: Retirement|Tags: , |

How portable benefits can support inclusivity among gig workers

By Wendy Cukier Source: Benefits Canada The concept of employee benefits was established on a foundation built decades ago, when employees worked full time and long term with one employer. Those days are long gone. Temporary, part-time and gig work have become the norm, accounting for 60 per cent of job growth in advanced economies since the 1990s. Gig work is popular in sectors such as the arts, entertainment and recreation and it’s also more prevalent among immigrants than [...]

2023-07-06T11:13:56-07:00July 6th, 2023|Categories: Economy|Tags: , , |

Statement by Bea Bruske: Senators vote to put workers and pensioners before big banks and wealthy CEOs

Source: Canadian Labour Congress Bruske: Passage of pension protection Bill C-228 is a win for workers and plan members Canada’s unions are celebrating the Senate’s decision to pass Bill C-228 (Pension Protection Act), legislation that will ensure defined-benefit pensions receive super-priority status in bankruptcy and insolvency cases. “Pension protection has been a priority for Canada’s unions for decades. Multiple private members’ bills seeking to protect pensioners in insolvency proceedings have been defeated but with Bill C-228, our government is [...]

2023-06-30T16:27:27-07:00June 30th, 2023|Categories: Defined Benefit Plans|Tags: , , |

Controversial super-priority pension bill receives royal assent

By Gideon Scanlon Source: Benefits Canada A controversial law giving super-priority to defined benefit pension plan members during plan windups and insolvencies is coming into effect after receiving royal assent from Governor General Mary Simon. While Bill C-228 received royal assent at the end of April, most of its measures won’t come into force for another four years. However, the requirement that all federally regulated pension plans produce annual reports on plan solvency is now in effect. Marilyn Gladu, [...]

2023-05-03T14:20:11-07:00May 2nd, 2023|Categories: Retirement|Tags: , |

Defined Benefit Pensioners Win Battle for Pension Protection

Source: Yahoo! Finance Yesterday marks a historic victory for the protection of Canadian pensioners. Bill C-228, An Act to amend the Bankruptcy and Insolvency Act, the Companies' Creditors Arrangement Act and the Pension Benefits Standards Act, 1985passed third reading in the Senate, and awaits Royal Assent. "This landmark legislation will protect millions of Canadians who rely on defined benefit pensions for their financial security in retirement," said Michael Powell, President, Canadian Federation of Pensioners, whose organization led the charge [...]

2023-05-03T13:44:28-07:00April 19th, 2023|Categories: Retirement|Tags: , |

Pension super-priority bill becoming law following Senate vote

By Gideon Scanlon Source: Benefits Canada A bill that provides super-priority to defined benefit pension plan members during plan windups or employer bankruptcies has been passed by the Senate and will become law. “Now that C-228 has passed, it is up to the government to schedule it for royal assent and then to incorporate it into the [Bankruptcy and Insolvency Act] and [the Companies’ Creditors Arrangement Act],” said Mike Powell, president of the Canadian Federation of Pensioners, an organization [...]

2023-03-29T10:49:24-07:00March 29th, 2023|Categories: Defined Benefit Plans|Tags: , , |

Unions welcome new protections for workers’ pensions

Source: Canadian Labour Congress Canada’s unions are happy to see Bill C-228 passed in the House of Commons today. This bill aimed to ensure that in the event of an employer becoming insolvent, the employer will have to prioritize paying pensions before addressing other financial liabilities. ‘‘Bill C-228 is about fairness for workers. We’re encouraged by the cross-party support for this legislation,’’ said Bea Bruske, President of the Canadian Labour Congress. “For decades we have seen companies pay out [...]

2023-02-23T16:43:36-08:00February 23rd, 2023|Categories: Economy|Tags: , , |

Ontario’s pension plans remained resilient despite challenges

By Steve Randall Source: Wealth Professional Ontarians can feel confident that their pension plans weathered the economic storms of 2022 with resilience according to a provincial regulator. The Financial Services Regulatory Authority of Ontario's (FSRA) says that most pension plans in Ontario managed to navigate the economic challenges and market volatility to remain strong. Today (Feb. 16) the regulator is holding its first ever Pension Awareness Day to get people thinking more about retirement savings and engage with employers and unions [...]

2023-02-16T10:18:11-08:00February 16th, 2023|Categories: Defined Benefit Plans|Tags: , |

Employers favouring wage hikes over benefits enhancements amid high inflation

Source: Benefits Canada While Canadian employers recognize the value of retirement benefits, the current high inflation environment is driving them to favour wage hikes instead, according to a new survey by the Healthcare of Ontario Pension Plan and Angus Reid Group. The survey, which polled nearly 800 business owners and senior leaders, found employers’ leading concerns are greater competition for hiring (82 per cent), employee burnout (79 per cent), labour shortages (79 per cent) and high turnover (77 per [...]

2022-11-07T11:24:18-08:00November 7th, 2022|Categories: Economy|Tags: , , |

Amendments to insolvency legislation would secure DB pensions, say retiree organizations

Source: Benefits Canada Six organizations representing Canadian retirees say proposed amendments to the federal Bankruptcy and Insolvency Act would have a positive impact on defined benefit pension plan members. In an open letter to the House of Commons standing committee on finance, the six organizations —CanAge, the Canadian Federation of Pensioners, the Canadian Network for the Prevention of Elder Abuse, CARP,  the National Pensioners Federation and the Réseau FADOQ — said federal insolvency and pension laws currently favour the [...]

2022-10-20T15:20:46-07:00October 20th, 2022|Categories: Defined Benefit Plans|Tags: , |

How employers can help shrink Canada’s gender pension gap

By Sadie Janes Source: Benefits Canada Canada’s gender pension gap is growing as Canadian women received an average of 18 per cent less retirement income than men in 2020, according to a report by Ontario’s pay equity office. It found the gap is more pronounced among women in visible minority groups (37 per cent), among sources of private retirement income (28 per cent) and is three per cent higher than the 15 per cent gap observed in 1976, the earliest [...]

2022-10-10T16:22:49-07:00October 10th, 2022|Categories: Retirement|Tags: , , |

Majority of Ontario’s DB pension plans more than fully funded

Source: Benefits Canada The average Ontario defined benefit pension plan is in the best funded position since December 2009, according to the Financial Services Regulatory Authority of Ontario’s latest quarterly solvency report. It found 81 per cent DB plans had a solvency ratio greater than 100 per cent at the end of 2021, compared to 67 per cent at the end of the third quarter of 2021 and 45 per cent in the last quarter of 2020. In addition, [...]

2022-02-18T13:10:52-08:00February 18th, 2022|Categories: Defined Benefit Plans|Tags: , , |

Public-Sector Pensions Help Drive Canadian Economy

Source: AI-CIO.com Canadian public pension funds are proving to be an important driver of the country’s economy, contributing more than 877,100 jobs and over C$82 billion (US$65.5 billion), or 3.6%, of its gross domestic product (GDP) annually, according to a recent report from the Canadian Centre for Economic Analysis (CANCEA). The report found that through the economic activity supported by spending their pension incomes, retired public pension members alone support more than 794,000 jobs and C$74 billion of Canada’s [...]

2021-11-22T15:45:21-08:00November 22nd, 2021|Categories: Economy|Tags: , |

Employers see retirement benefits as top attraction, retention tool

By Lauren Bailey Source: Benefits Canada A majority of Canadian employers believe providing workplace retirement savings plans can improve employee attraction and retention, according to a survey by Maru Group Ltd. on behalf of the Healthcare of Ontario Pension Plan. The survey, which polled 800 Canadian employers, found 88 per cent of those that offer a defined benefit pension plan said it was “extremely important” or “very important” to their employee retention efforts, followed by 85 per cent of [...]

2021-11-22T15:43:29-08:00November 22nd, 2021|Categories: Retirement|Tags: , , |

RBC: Canadian pension returns up slightly in Q3

By Rob Kozlowski Source: Pensions & Investments Canadian corporate and public pension plans in the RBC Investor & Treasury Services universe saw a median gross return of 0.6% in the three months ended Sept. 30. A news release Friday said the nearly-flat median return was because of a negative market environment in September that counteracted the positive returns in July and August. Canadian equities returned a median gross 1.5%, while the S&P/TSX Composite index returned 0.2% for the quarter. [...]

2021-10-29T16:56:14-07:00October 29th, 2021|Categories: Defined Benefit Plans|Tags: , |

Expert panel: Climate change putting spotlight on ESG issues for pension plans

By Susan G. Seller Source: Benefits Canada The images of floods, forest fires and heat waves over the past few years is putting climate change front of mind for many, including pension plan sponsors and administrators. It’s become increasingly clear that environmental, social and governance factors are emerging as an important area of concern for pension plan administrators and, by extension, the boards and pension committees that exercise oversight over the investment of the assets of employer-sponsored pension plans. [...]

2021-10-19T15:10:13-07:00October 19th, 2021|Categories: ESG|Tags: , , |

CAAT Pension Plan brings on 55 more employers in first half of year

By Rob Kozlowski Source: Pensions & Investments Pension plan participants at 55 Canadian employers joined the C$15.8 billion ($12.7 billion) Colleges of Applied Arts and Technology Pension Plan, Toronto, in the first half of 2021. With those moves, more than 3,300 new participants joined CAAT's DBplus plan, spokeswoman Lindsay Grillet said in an email. The additions bring the total to 125 employers in 10 industries that have joined the CAAT Pension Plan. The plan, which was originally established for [...]

2021-07-22T14:50:13-07:00July 22nd, 2021|Categories: Multiemployer Plans|Tags: , , |

5 key questions on pensions

By: Jeffrey R. Smith Source: HR Reporter Employer-sponsored pension plans have shifted some of the responsibility for retirement saving to employees, but a supportive plan can be a good tool for recruitment and retention. Canadian HR Reporter spoke about pension plan strategies with Som Seif, founder and CEO of Purpose Investments in Toronto, which recently launched the Longevity Pension Fund. Q: How has an aging workforce affected employers’ approach to pension plans? A: “It’s one of the biggest social [...]

2021-07-19T13:53:05-07:00July 19th, 2021|Categories: Defined Benefit Plans|Tags: |

Canadian DB pensions see improved funded position, investment returns

Source: Benefits Canada The aggregate funded ratio for Canadian defined benefit pension plans in the S&P/TSX composite index increased from 94.8 per cent in the first quarter of 2021 to 95.6 per cent in the second quarter, according to a new report from Aon. It also found pension assets rose by four per cent during the same period. The rise was credited to positive returns on fixed income assets and continued strong equity market performance. However, long term Government of [...]

2021-07-07T09:03:28-07:00July 7th, 2021|Categories: Defined Benefit Plans|Tags: , |

Are we headed for a retirement crisis?

By Jim Wilson Source: Canadian HR Reporter Two-thirds (67 per cent) of Canadians feel that the country is facing an emerging retirement crisis, according to a new report. Why? More than six in 10 (63 per cent) have not set aside anything for retirement in the past year, up by five per cent from data recorded in 2020. Plus, 65 per cent said that saving for retirement is prohibitively expensive, according to the Healthcare of Ontario Pension Plan (HOOPP). [...]

2021-06-18T13:56:55-07:00June 18th, 2021|Categories: Retirement|Tags: , |

Canada’s largest pension funds come together at inaugural climate change event

Source: Benefits Canada Representatives from eight of Canada’s largest pension funds — known as the Maple Eight — participated in the first meeting of the Sustainable Finance Action Council last week. On June 11, representatives of the Alberta Investment Management Corp., the British Columbia Investment Management Corp., the Caisse de dépôt et placement du Québec, the Canada Pension Plan Investment Board, the Healthcare of Ontario Pension Plan, the Ontario Municipal Employees Retirement System, the Ontario Teachers’ Pension Plan, the [...]

2021-06-17T16:53:50-07:00June 17th, 2021|Categories: Defined Benefit Plans, Sustainable Investing|Tags: , |

72% of Canadian pension funds considering consolidation options: survey

Source: Benefits Canada The majority (72 per cent) of Canadian pension funds said they’re currently focused on consolidation options that offer greater certainty they’ll be able to meet their liabilities, according to a survey by CIBC Mellon. It also found 50 per cent of pension funds surveyed plan on implementing consolidation plans over the next three to five years. The same percentage (50 per cent) of respondents that said they’re considering merging other funds’ assets into their owns plans [...]

2021-05-13T08:05:25-07:00May 3rd, 2021|Categories: Defined Benefit Plans|Tags: , |

DB plan solvency in best position since financial crisis: FSRA

By James Langton Source: Advisor's Edge In the first quarter of 2021, the funding status of defined-benefit (DB) pensions in Ontario surged to its best level since the financial crisis. The Financial Services Regulatory Authority of Ontario (FSRA) reported that the median solvency ratio for the province’s DB pensions rose to 103% (as of March 31), up from just 85% in March 2020 when the Covid-19 pandemic began. In the first quarter, the median solvency ratio rose from 98% [...]

Canadian pension plans register big funding boost in Q1

By Rob Koslowski Source: Pensions & Investments The aggregate funding ratio of Canadian pension plans rose to 94.8% as of March 30 from 89.4% three months earlier, according to a survey from Aon. The overall funding deficit was about $21 billion. Overall pension assets lost about 2.3% in value over the quarter ended March 30 due to negative returns on fixed income that were partially offset by strong equity gains, according to a news release Wednesday announcing the survey. [...]

2021-04-02T09:06:43-07:00April 2nd, 2021|Categories: Defined Benefit Plans|Tags: |

Canada’s DB pension plans continue to improve in 2021

By Steve Randall Source: Wealth Professional Good news for Canada’s retirement savers, pension funds are continuing to improve their financial health in the first three months of 2021. The aggregate funded ratio for Canadian defined benefit pension plans in the S&P/TSX Composite Index increased from 89.4% to 94.8% in the first quarter according to the Aon Pension Risk Tracker. The strong performance of Canadian stocks helped bolster the position of pension funds, partially offsetting negative returns on fixed income assets, [...]

2021-04-01T14:47:30-07:00April 1st, 2021|Categories: Defined Benefit Plans|Tags: |

Canada’s pension system gets top grades in new benchmark

Canada’s pension system was ranked first overall among 15 countries in the Global Pension Transparency Benchmark. It ranked Canadian funds first in governance, citing the “global reputation for superior performance and governance excellence” of Canada’s five largest funds, namely the British Columbia Investment Management Corp., the Caisse de depot et placement du Québec, the Canada Pension Plan Investment Board, the Ontario Teachers’ Pension Plan and the Public Sector Pension Investment Board. Of these, the benchmark highlighted the best practices [...]

2021-02-24T15:00:17-08:00February 24th, 2021|Categories: Defined Benefit Plans|Tags: |

Canadian DB pension plans entering 2021 in good financial shape

The aggregate funded ratio for Canadian pension plans in the S&P/TSX composite index increased from 90.8 per cent to 91.2 per cent during the past 12 months, according to Aon’s pension risk tracker. Aon found the funded status deficit decreased by $200 million, which was driven by asset increases of $18.7 billion and offset by year-to-date liability increases of $18.5 billion. Pension assets returned 9.9 per cent over 2020 and ended the fourth quarter up 3.9 per cent. The year-end, [...]

2021-01-07T15:20:54-08:00January 7th, 2021|Categories: Defined Benefit Plans|Tags: |

Canadian DB plans bouncing back after stock rally

A rally on the stock market in the fourth quarter helped boost the strength of Canadian defined benefit pension plans to end 2020, according to a new report by Mercer Canada. The consulting firm said its pension health index, which represents the solvency ratio of a hypothetical DB plan, rose to 114 per cent at the end of December from 107 per cent at the end of September. Mercer said in the fourth quarter the funded positions of DB [...]

2021-01-06T13:42:33-08:00January 6th, 2021|Categories: Defined Benefit Plans|Tags: |

Canadian DB pensions return 3.13% as markets rebound

Canadian defined benefit pension plans posted a median 3.13 per cent return for the third quarter of 2020, following a strong market rebound, according to a new report by BNY Mellon Asset Management Canada Ltd. The organization’s master trust universe, which is comprised of 86 Canadian corporate, public and university pension plans, found U.S. equities was the highest-performing asset class with a median return of 6.46 per cent, trailing the S&P 500 index’s 6.83 per cent. And Canadian equities posted a [...]

2020-11-06T11:32:11-08:00November 6th, 2020|Categories: Defined Benefit Plans|Tags: , |

Retirement security trumps job security

Canadian workers are still focused on having a good workplace retirement plan, despite the global pandemic, according to a recent survey. Fifty-five per cent say that they are concerned about retirement security compared to 44 per cent who are worried about job security, finds the survey of 3,500 Canadians, conducted between May 27 and June 5 for the Healthcare of Ontario Pension Plan (HOOPP). “It reinforced to us how important and top-of-mind retirement savings are for Canadians,” says Steven [...]

2020-09-29T12:22:24-07:00September 29th, 2020|Categories: Retirement|Tags: , |

Pensions preferred over higher pay

Eighty per cent of Canadians would rather have a better pension plan, or any pension plan, instead of a higher salary, according to a new survey. “[This idea that] people would actually forego some salary increase to get a higher pension is something that I think surprises, just the level of commitment to that,” says Jim Keohane, president and CEO of the Healthcare of Ontario Pension Plan (HOOPP) in Toronto, which commissioned the survey. The 80 per cent is [...]

2020-08-17T12:26:51-07:00August 17th, 2020|Categories: Defined Benefit Plans|Tags: , , |

Canadian defined benefit pension plans enjoy best quarter ever

Canadian defined benefit pension plans experienced a pronounced upsurge in the second quarter, posting a median return of 9.6 per cent, according to the RBC Investor & Treasury Services All Plan Universe.  This marked the highest single quarter return in the universe’s history, reversing the steep Q1 losses and raising the median plan’s return to 1.4 per cent on a year-to-date basis. The gains followed a series of aggressive fiscal and monetary support measures introduced in March to address [...]

2020-08-03T11:56:43-07:00August 3rd, 2020|Categories: Defined Benefit Plans|Tags: |
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