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 […]
Alcoa Corp. is de-risking roughly $315 million (US$235 million) in Canadian defined benefit pension obligations and assets with an annuity transfer. The group annuity contracts will be executed by Industrial Alliance Insurance and Financial Services Inc., which will assume payments for roughly 500 participants in September, according to a press release. Read: Alcoa entering $1BN […]
The Saskatchewan government is introducing amendments to its pension legislation that provide additional flexibility for plan sponsors and introduce new decumulation options for members of defined contribution plans. The bill, which passed first reading in provincial parliament last week, includes provisions for DC plan sponsors to offer advanced life deferred annuities and variable payment lifetime […]
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 […]
Stelco Inc. is de-risking one of its defined benefit pension plans with a $1.3 billion annuity buy-in. The deal, which covers more than 7,000 United Steelworkers members and beneficiaries employed at the company’s Hamilton, Ont.-based plant, was completed in May with Brookfield Annuity Co. and Sun Life Financial Inc. Read: Stelco workers, retirees learn fate […]
When it comes to private equity investments, there’s a business case for multi-manager co-investment funds versus single-manager primary funds, according to research by Capital Dynamics. The global asset management firm published a research paper using Preqin data to compare how actual co-investment funds compare to single sponsor private equity funds of the same vintage. It […]
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 […]