The median solvency ratio of defined benefit pension plans in Canada increased during the third quarter of 2023, according to separate reports from Mercer and Aon. Mercer’s report showed median solvency ratio rose from 119 per cent at June 30 to 125 per cent at Sept. 30, according to Mercer’s latest pension health pulse. The report, […]
Record levels of transactions in the U.K. and U.S. pension risk transfer markets in 2022 are carrying into the first half of 2023, according to a new report by the Legal & General Group. In the U.K., the report found an unprecedented acceleration in demand, driven by more defined benefit pension plans being closer to […]
RSA U.K. Pension Trustees, a subsidiary of Intact Financial Corp., is de-risking roughly £6.5 billion in U.K. defined benefit pension liabilities with an annuity buy-in. The deal, which will be completed with Pension Insurance Corp., will transfer all remaining economic and demographic risks associated with the Royal Insurance Group Pension Scheme and the Sal Pension Scheme, […]
Higher long-term bond yields driven by rising interest rates are lowering the cost of annuity purchases for defined benefit pension plans, says Mary Kate Archibald, a principal at Eckler Ltd. Since January, the cost of an annuity purchase has decreased by between 10 and 15 per cent, as long-term bond yields increased from 1.7 to […]
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 […]