7 01, 2021

Canadian DB pension plans entering 2021 in good financial shape

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

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, [...]

6 01, 2021

Canadian DB plans bouncing back after stock rally

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

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 [...]

6 11, 2020

Canadian DB pensions return 3.13% as markets rebound

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

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 [...]

29 09, 2020

Retirement security trumps job security

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

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 [...]

17 08, 2020

Pensions preferred over higher pay

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

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 [...]

3 08, 2020

Canadian defined benefit pension plans enjoy best quarter ever

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

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 [...]

10 01, 2020

Canadian pensions ‘envy of the world,’ OMERS chief says; Fund handles retirement of almost half a million active, retired employees

2020-01-10T14:09:13-08:00January 10th, 2020|Categories: Retirement|Tags: , , |

The new head of Ontario Municipal Employment Retirement System is feeling pretty confident about the pension fund's ability to find pockets of value this year. "The Canadian pension plans are the envy of the world in so many ways," Blake Hutcheson said in an interview with BNN Bloomberg. "It's been made OK to own platforms and buy and scale companies, giving us tremendous competitive advantage. It's been made OK to put teams together and pay them properly to compete [...]

11 11, 2019

What it would mean for pensioners if Kenney creates an Alberta pension plan

2019-11-11T13:05:17-08:00November 11th, 2019|Categories: Pension Funding|Tags: , |

Naturally, some questions arise whenever anyone floats the possibility of transferring billions of public dollars from one fund manager to another. Speaking Saturday during a keynote address to close the Manning Conference in Red Deer, Alberta, Premier Jason Kenney laid out measures that will be explored as part of what's being called the Fair Deal Panel. He announced initiatives that include creating a provincial police force, establishing a formal provincial constitution and opting out of federal cost-sharing programs. The [...]

13 02, 2019

DB pensions best option for Canadian employers, economy

2019-02-13T11:13:26-08:00February 13th, 2019|Categories: Defined Benefit Plans|Tags: |

Defined benefit pension plans aren’t just better for Canadian workers, but for the country’s economy in general, according to a new study by the Canadian Public Pension Leadership Council. Statistics Canada data from 2018 showed 37.5 per cent of Canadian workers have some type of pension or retirement savings plan through their workplace, and 25.2 per cent have a DB plan. Far more (88 per cent) employees in the public sector participate in some form of retirement savings plan compared to the private sector [...]

16 01, 2019

Pension legislation should balance DB sustainability with pension promise

2019-01-16T11:30:27-08:00January 16th, 2019|Categories: Defined Benefit Plans|Tags: |

Any modifications to federal pension legislation should encourage plan sponsors to continue offering defined benefit pension plans, while helping them fulfil their pension promises to plan members, according to the Canadian Institute of Actuaries. “Fulfilling pension promises is especially important for those plan members who can least afford the risk of benefit reductions, such as those with a modest monthly pension and those who are at an age where pension losses cannot easily be made up with new savings,” wrote the CIA in [...]

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