13 02, 2019

DB pensions best option for Canadian employers, economy

2019-02-13T11:13:26-07:00February 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

2019-01-16T11:30:27-07:00January 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

2018-02-05T16:16:34-07:00February 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

2017-11-28T13:40:10-07:00November 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

2017-11-16T22:51:56-07:00November 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. […]

8 11, 2017

DB pension solvency reaches highest level in 15 years

2017-11-08T18:45:51-07:00November 8th, 2017|Categories: Defined Benefit Plans|Tags: |

The median solvency ratio for Canadian defined benefit plans rose to 100.7 per cent in October as equity markets continued to rally, according to Aon Hewitt’s monthly median solvency ratio survey. The figure is 1.4 percentage points higher than the beginning of October and the highest level since the survey recorded 102 per cent in 2002. Of surveyed plans, 51.5 per cent were more than fully funded as of Nov. 1, 2017, up 3.8 percentage points from the previous month. […]

8 09, 2017

Participants urged to tout the benefits of DB plans

2017-09-08T18:04:19-07:00September 8th, 2017|Categories: Defined Benefit Plans|Tags: , |

Executives at Ontario-based public pension plans are enlisting their participants to talk up defined benefit plans to friends and neighbors in hopes of ultimately pressuring their corporate employer colleagues to keep their DB plans. The efforts all center on grass-roots programs to educate public plan participants on the value of a defined benefit plan as the optimal structure for providing a long-term retirement. The hope, the executives say, is that participants will convince their corporate-worker neighbors about the value [...]

12 07, 2017

The four reasons that retirement is costing Canadians more than ever

2017-07-12T21:45:28-07:00July 12th, 2017|Categories: Retirement|Tags: , , |

Retirement is getting more expensive for Canadians and it has been for quite a while. But despite soaring prices for some popular items at the grocery store, the broader cost of living is not the prime culprit. Rather, retirement is costing  more due to four primary factors, namely, longevity, pension trends, interest rates and investment fees. And it’s not just a Canadian issue, either. A recent study in the Journal of Financial Planning entitled Planning for a More Expensive [...]

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