annuitization – Benefits Canada.com

Report finds Canadian pension risk transfer market saw $7.8BN in transferred liabilities in 2022

bmcgovern — Thu, 10 Aug 2023 15:00:30 +0000

Canada’s pension de-risking market saw a record-breaking year in 2022, with $7.8 billion in transferred liabilities and 155 transactions, according to a new report by Eckler Ltd. Mary Kate Archibald, pension principal at the consultancy, says the increase in the total sum for the year wasn’t a surprise due to the interest rate environment. To […]

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Leveraging the long-term perspective at Rexel North America

Gideon Scanlon — Fri, 23 Jun 2023 12:51:29 +0000

The current economic maelstrom, with its high inflation and interest rates, has left many institutional investors operating in uncharted territory — though not Rashid Maqsood, vice-president of treasury at electrical products distributor Rexel North America Inc. His career began in the late 1970s — almost a decade before central banks began setting inflation targets. “It’s […]

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DB plan sponsors urged to reconsider asset allocations amid interest rate uncertainty: expert

Gideon Scanlon — Thu, 05 Jan 2023 17:30:23 +0000

The uncertainty about the direction interest rates will move in 2023 means defined benefit pension plan sponsors should be reconsidering their asset allocation strategies, says Ben Ukonga, principal at Mercer. “I don’t think anybody knows when, or if, interest rates will come down. If [inflation] comes down, the Bank of Canada’s likely to stop increasing […]

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Expert panel: Tips for DB plan sponsors as interest rates continue to rise

Gideon Scanlon — Tue, 01 Nov 2022 16:00:11 +0000

From an economic perspective, the last year has been quite tumultuous. As central banks began raising rates to tame inflation, the loose monetary environment with policy rates held at historic lows evolved to a rapidly tightening one. In October 2021, the overnight rate was 0.25 per cent and the 10-year Canadian bond yield was 1.6 […]

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The impact of coronavirus on pension funding status, asset mix

mschmit — Wed, 25 Mar 2020 10:23:08 +0000

With asset deterioration due to drops in equity markets and a decrease in long-term government bond yields causing an increase in solvency liabilities, pension funds are in a tough position. A Canadian defined benefit solvency funding calculation assumes some plan members will elect to take a commuted-value lump sum, while other members will elect to […]

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How West Fraser is taking a phased approach to pension plan annuitization

mschmit — Thu, 20 Feb 2020 04:49:13 +0000

West Fraser Timber Co. Ltd. isn’t annuitizing multiple defined benefit plans to get out of the pension business. In fact, the British Columbia-based integrated wood products company is committed to DB. “We believe we get tremendous value out of our DB plans around recruitment and definitely around retention of our employees,” says Elaine Jensen, the […]

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Pension Buyouts: Cheap in Canada

mschmit — Wed, 26 Feb 2014 07:41:28 +0000

They're less expensive here than anywhere else: Mercer.

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