Capital accumulation plan sponsors need to focus on providing lifetime retirement income for plan members amid the growth of decumulation solutions such as advanced life deferred annuities and variable payment lifetime annuities, according to a new report by the C.D. Howe Institute. It noted DC plan members currently have three main options to draw down […]
U.S. employers offering 403(b) retirement plans will benefit from access to collective investment trusts, according to a report by the Defined Contribution Institutional Investment Association. It noted the latest version of the Securing a Strong Retirement Act passed the House in March and, if it passes through the Senate with language that allows institutional 403(b) […]
As the Canadian Association of Pension Supervisory Authorities looks to update its capital accumulation plan guidelines, the amendments must reflect the changes in the industry, said Angela Mazerolle, vice-president of regulation at the Financial Services and Consumer Services Commission of New Brunswick, during a session at the 2022 Canadian Pension and Benefits Institute Forum in […]
Whether they’re delivering takeout, chauffeuring passengers, or fixing leaky sinks, most gig workers in Canada don’t get benefits. Classified as independent contractors rather than employees, they’re excluded from employer contributions to Canada Pension Plan and Employment Insurance, they may not be protected under worker’s compensation and they can’t participate in tax-advantaged benefits programs like registered […]
As a new year dawns, our attention turns to what’s ahead, the following are a few of my predictions for trends in the world of pensions in 2022. Volatility We’re entering the year in an environment of considerable economic and financial market uncertainty. Supply chain problems, elevated price inflation and labour shortages in certain industries […]
Among all the legal issues facing DC plan sponsors and administrators, questions around contribution errors is top of mind. “The industry has been speaking with [the Department of] Finance Canada on the tax side to see what can be done to help support us in fixing these errors,” said Susan Nickerson (pictured, left), a partner […]
For almost a year now, federal and provincial pension regulators have been busily trying to mitigate the effects of the coronavirus pandemic. Regulators have never been more proactive than during COVID-19,” says Mitch Frazer, a pensions and employment law partner at Torys LLP. “They deserve full credit for refusing to live in a bubble and […]
Much debate remains as to whether private equity is an appropriate option for members of capital accumulation plans. Canada’s neighbours to the south have been examining the potential legal pitfalls of these allocations. A recent information letter from the U.S. department of labor set forth a framework plan sponsors can use to consider the prudence […]
The collapse in the equity markets has damaged capital accumulation plan retirement accounts. Governments need to level the playing field between defined benefit plans and CAPs, which include defined contribution plans, registered retirement savings plans and pooled registered pension plans, to assist capital accumulation plan members in rebuilding their retirement accounts. If investments are not […]
The Saskatchewan Pension Plan is improving investment choice for members in the accumulation phase and introducing new options to help them through decumulation as well. Leading up to retirement, SPP members are defaulted into a balanced fund, which has been in place since the plan started in 1986. In 2010, it introduced a short-term fund, […]