3 05, 2021

72% of Canadian pension funds considering consolidation options: survey

2021-05-03T14:43:11-07:00May 3rd, 2021|Categories: Defined Benefit Plans|Tags: , |

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 [...]

23 04, 2021

Borderless Pension Plans

2021-04-23T11:40:32-07:00April 23rd, 2021|Categories: Defined Benefit Plans|Tags: |

By Michael Brough Source: HR Daily Advisor As organizations become more global, HR leaders face the challenge of how best to reward and protect certain groups of their international staff. Pensions and savings benefits are often tightly bound by local rules and restrictions that can exclude some workers or render the benefits unattractive or insecure. One option is to look at the increasingly popular “borderless” or international pension plans that exist outside of domestic frameworks. When the first Willis [...]

23 04, 2021

DB plan solvency in best position since financial crisis: FSRA

2021-04-30T08:58:42-07:00April 23rd, 2021|Categories: Defined Benefit Plans|Tags: , , |

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% [...]

7 04, 2021

UK universities propose cutting benefits to save pension scheme

2021-04-07T16:22:15-07:00April 7th, 2021|Categories: Defined Benefit Plans|Tags: , |

By Bethan Staton and Josephine Cumbo Source: Financial Times Hundreds of thousands of university sector staff in the UK would see their retirement benefits cut under employer proposals to avert “unaffordable” rises in contributions as the sector struggles with a years-long pensions crisis.  Plans outlined on Wednesday by Universities UK, which represents more than 340 higher education sector employers, would see guaranteed pensions for about 200,000 of the 460,000 members become less generous, with higher-earning academics taking the biggest [...]

7 04, 2021

Strengthening markets affect contributions

2021-04-07T10:16:19-07:00April 7th, 2021|Categories: Defined Benefit Plans|Tags: |

By Rob Kozlowski Source: Pensions & Investments U.S. corporate pension plans continue to lower their pension contributions as a strong market and accelerated pension contributions in the past have kept funding levels healthy despite the effects of the COVID-19 pandemic. U.S. corporations plan to contribute a total of slightly less than $15 billion to their global pension plans in 2021, according to Pensions & Investments' analysis of S&P 500 companies that announced contributions of at least $100 million. The [...]

2 04, 2021

Canadian pension plans register big funding boost in Q1

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

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. [...]

1 04, 2021

Canada’s DB pension plans continue to improve in 2021

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

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, [...]

1 04, 2021

Pensions In The Sunshine State: Avoiding Unintended Dark Clouds

2021-04-01T14:47:54-07:00April 1st, 2021|Categories: Defined Benefit Plans|Tags: , |

By Dan Doonan Executive Director, National Institute on Retirement Security Source: Forbes Florida lawmakers are considering legislation that would eliminate retirement plan choice for state employees. The proposed measure would do away with defined benefit pensions for newly-hired employees, offering only a 401(k)-style defined contribution plan. Other states and localities that have implemented dramatic shifts to their public employee retirement plans have experienced unfortunate, unintended consequences – from skyrocketing costs to losing experienced employees who deliver essential public services. [...]

1 04, 2021

More should be done to help part-time employees into pensions, say experts

2021-04-01T14:48:39-07:00April 1st, 2021|Categories: Defined Benefit Plans|Tags: |

By Vicky Shaw Source: Yahoo! Sport Only about 58% of part-time UK employees have a workplace pension, figures show. Nearly nine in 10 (86.4%) employees who work full-time have a workplace pension, but that figure falls to just over half (57.8%) of those working part-time, according to the Office for National Statistics (ONS). The figures, from 2020, also show that just over a third (34.8%) of people with a workplace pension are in a “gold-plated” defined benefit (DB) scheme, [...]

24 03, 2021

Too embarrassed to ask: what’s the difference between a defined benefit pension and a defined contribution pension?

2021-03-24T14:53:59-07:00March 24th, 2021|Categories: Defined Benefit Plans|Tags: , |

A pension is simply a tax-efficient savings vehicle, or “tax wrapper”, that allows you or your employer to invest for your long-term future.  For most of us, the main goal of a pension is to provide us with money to live off in later life, usually once we’ve retired from full-time employment. The rules governing pensions can seem confusing, particularly as the government fiddles with them at almost every other budget. But at the most basic level, there are [...]

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