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 [...]

9 10, 2018

Canadian DB Pension Funds’ Cup Runneth Over

2018-10-09T09:26:01-07:00October 9th, 2018|Categories: Defined Benefit Plans|Tags: |

A strong US equity market and rising bond yields helped boost the funded status of Canadian defined benefit pension plans to levels not seen in nearly two decades, according to reports from consulting firm Mercer and professional services firm Aon. At the end of the third quarter, the solvency position of Canadian defined benefit pension plans climbed to 112%, up from 107% at the end of the previous quarter—its highest level since November 2000, according to the Mercer Pension Health Index, [...]

2 10, 2018

Canadian DB pensions reach highest solvency in nearly two decades

2018-10-02T10:41:53-07:00October 2nd, 2018|Categories: Defined Benefit Plans|Tags: |

In the third quarter of 2018, Canadian defined benefit pension plans reached their highest solvency ratio of any quarter since November 2000, according to Mercer’s latest pension health index. Representing a hypothetical plan, the index reached a 112 per cent solvency level as of Sept. 28, 2018, up from 107 per cent at the ned of the previous quarter. As well, more than 60 per cent of plans are now fully funded and only five per cent stand at a [...]

5 02, 2018

Canadian DB plans post positive returns in last quarter of 2017

2018-02-05T16:16:34-08:00February 5th, 2018|Categories: Defined Benefit Plans|Tags: |

Canadian defined benefit plans posted a median return of 4.29 per cent in the last quarter of 2017, a marked improvement compared to the median return of 0.55 per cent in the third quarter of the year, according to a report by BNY Mellon Asset Management Canada Ltd. The firm’s tracking service, which consists of 88 Canadian corporate, public and university pension plans, showed a one-year median return of 9.83 per cent in its latest report. It found Canadian university plans had the [...]

28 11, 2017

Canada not preparing for ‘greying of society’ given retirement age reversal

2017-11-28T13:40:10-08:00November 28th, 2017|Categories: Retirement|Tags: , |

Compared to other high-income countries, Canada is doing very little to prepare for the “greying of society,” according to a new study by public policy think-tank the Fraser Institute. Among G7 countries, Canada is the only one without a plan to increase the age of eligibility for government retirement programs, noted the study. The former Conservative federal government planned to increase the age of eligibility to 67 for old-age security and the guaranteed income supplement, a measure that would have been [...]

14 11, 2017

OPTrust to divest from all tobacco-related equity, bond investments by January

2017-11-16T22:51:56-08:00November 14th, 2017|Categories: Pension Funding|Tags: , , |

OPTrust, which manages the assets of the C$19.5 billion ($15.2 billion) Ontario Public Service Employees Union Pension Plan, Toronto, will divest from all tobacco-related equity and fixed-income investments by Jan. 1, 2018. The divestment will affect C$23 million in equity and bond investments that derive most of their revenue from production or manufacture of tobacco products, said Hugh O’Reilly, president and CEO, in an interview Thursday. […]

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