With the end of 2013 in sight, I can safely say “de-risking” is this year’s hottest pension buzzword. What, though, do I mean by de-risking, and how new is it really?
While they’re increasingly interested in managing risk, DB plan sponsors in Canada still aren’t far along the de-risking continuum, experts explained in a recent Association of Canadian Pension Management webinar.
Coverage of the 2013 Risk Management Conference
The Canadian Wheat Board (CWB) has signed a deal with Sun Life Financial to purchase a $150-million annuity policy that transfers investment and longevity risk from its DB plan to the insurer.
$150 million policy pushes risk to insurer.
The Canadian Wheat Board has purchased a $150-million annuity policy from Sun Life Financial that transfers investment and longevity risk from its DB plan to the insurer.
Canadians now are living longer and healthier lives than the generations past. According to Statistics Canada, Canadians are already living about 20 years past age 65 and the number of centenarians has increased by more than 25% since 2006. And, the number of seniors aged 65 and over increased by 14.1% since 2006.
Sponsored By: Why De-Risk? Many DB plan sponsors have decided that their defined benefit obligations are unsustainable. As a result they are looking for approaches to opportunistically reduce risk over a time horizon appropriate for their financial constraints and workforce arrangements. Each DB plan sponsor will have a very specific set of plan provisions, financial […]
It was a difficult few months in the second quarter of 2012 for Canadian pension plans, according to reports released today by both Mercer and Towers Watson. Mercer’s Pension Health Index stands at 77% as of June 30, down 5% over the quarter. And Towers Watson’s DB Pension Index fell 1.4%.
With interest rates stuck at historic lows, we’re at a point where the “annuities are expensive” mantra is conventional wisdom and rarely questioned. The purpose of this article is to explore this notion and quantify what “expensive” really means.