Canada is the cheapest location to insure retiree DB pension obligations and the United Kingdom is the most expensive location, according to data produced by Mercer.
Coverage of the 2013 Risk Management Conference.
Despite tastes for beaver tails and poutine, Canadians are living longer than ever before. And if you’re an employer with a DB pension plan, it probably means that you’ll be paying pensions to your retirees for longer than you expect.
The ancient Romans are widely considered to have been master engineers and builders. One of their many innovations was the design and construction of a massive network of roads spanning across what would encompass much of continental Europe. Since Rome was the centre of the Roman Empire, the system of roads was created to facilitate the flow of people, goods and weaponry to and from the Roman capital—hence the idiom “all roads lead to Rome.”
Increased longevity poses a real risk to DB plans. Mortality improvement continues to trend upward, and this is particularly pronounced at older retirement ages.
Many public and private employer pension funds have under-reserved for longevity risk, a new report from Swiss Re reveals. The report, Longevity risk and protection for Canada, provides some solutions insurers may wish to think about. The report identifies more than $1 trillion of pension assets and immediate annuity reserves as “at risk” in Canada […]
Pension buyout arrangements: are plan sponsors and members buying in? The credit crisis has served to underscore plan sponsor risks associated with defined benefit (DB) pension plans. Does the solution to effectively managing those risks lie in passing on the responsibility for the plan’s financial obligations to a third party, i.e., an insurance company? This […]