Gains from U.S. equities and shrinking liabilities led to healthier Canadian defined benefit pension plans at the beginning of September, according to Aon’s latest data. Its median solvency ratio, which tracks the plans it administers, rose one percentage point since Aug. 1, 2018, to 102.9 per cent. The number of plans that are fully funded also rose […]
As Air Canada seeks approval from the Office of the Superintendent of Financial Institutions to form its own life insurance company, bringing it one step closer to the annuities market, will this move become a trend for large organizations with looming pension payouts? In an email to Benefits Canada, a spokesperson from the airline said the move is […]
The Weyerhaeuser Co. is putting in action a number of steps to reduce its U.S. defined benefit pension liabilities while maintaining the plan’s current funded status. First, the Seattle-based timberland company will offer select plan members the opportunity to take an immediate lump-sum distribution, which will be paid from plan assets during the fourth quarter of […]
While Canadians’ increasing longevity has been a growing issue for pension plans and providers alike, its effect on quality of living can vary significantly across income brackets, according to new research by the C.D. Howe Institute. Since 1965, both men and women in Canada have been living longer after the age of 50, the report noted. Men […]
Air Canada is seeking finance ministry approval to form its own life insurance company as a gateway to the annuities market and a hedge against looming pension payouts. A spokesperson says the airline aims to shore up pension risks by buying annuities from Canadian insurers and reinsuring the fixed payments through an insurance subsidiary. The Montreal-based carrier […]
Some 61 per cent of Ontarians said they have or anticipate having low liquid retirement assets, according to new research by the Canadian Institute of Actuaries. Its research, prepared by Saisai Zhang, Mary Hardy and David Saunders of the University of Waterloo’s department of statistics and actuarial science, looked at the anticipated concerns of those between the ages […]
Canadian group annuity sales reached an estimated $1 billion in the first quarter of 2018, according to Willis Towers Watson’s quarterly update. The significant volume of activity is largely due to a single large transaction. Recently, Alcoa Corp. completed an annuity buyout worth more than $700 million for about 2,100 pension plan members across Canada. […]
With annuities largely comprised of fixed-income investments, can the sponsors of pension plans gain an advantage by replicating such a portfolio on their own with a focus on private debt? During a presentation for plan sponsors in Toronto on Thursday, Michael Augustine, a managing director at TD Asset Management Inc., touted the option of reducing […]
As of July 1, 2018, new provisions under Ontario’s Pension Benefits Act will allow the sponsors of defined benefit pension plans to obtain a discharge from their obligations to former and retired plan members for whom they’ve purchased an annuity. Under the changes, plan sponsors will need to fulfil certain requirements before they can obtain a […]
While saving for retirement is an incredibly long journey, visualizing the entire process is a great way to get to better outcomes, according to Neil Walton, head of investment solutions at Schroder Investment Management Ltd. “Start with the end in mind,” Walton told participants at Benefits Canada’s Defined Contribution Plan Summit. “That means reviewing projected […]