While defined contribution pension plans currently outnumber defined benefit pension plans, this wasn’t always the case, recalls Bita Jenab, a principal at RetirementWorks Services Inc. DC plans began to gain popularity in the mid-1980s, due to a combination of legislative and economic changes, she adds. “This period marks the introduction of pension accounting rules under […]
While Canada’s pension system continues to rank well globally, the current economic environment poses particular risks for defined contribution pension plan sponsors and members, according to a new report by the CFA Institute and Mercer. “As DC pension plans continue to make up a greater part of Canadians’ retirement, turbulent markets, soaring inflation and a […]
The vast majority (87 per cent) of 401(k) retirement plans — covering more than 90 per cent of 401(k) plan members — offer employer contributions, according to a report by BrightScope Inc. and the Investment Company Institute. The report, which analyzed 64,000 large private sector 401(k) plans, found employer contributions represented 31 per cent of […]
The Pension Investment Association of Canada is providing feedback on the Alberta government’s consultation draft of potential legislative and policy updates for private sector pension laws. While the PIAC doesn’t have specific views on how to calculate the provision for adverse deviation, it’s encouraged Alberta is considering a harmonized approach, wrote Sean Hewitt, chair of […]
Canadian life and health insurers processed nearly $600 million in claims related to mental health in 2021, up 45 per cent since 2020 and 75 per cent since 2019, according to the Canadian Life and Health Insurance Association’s annual fact book. “2021 was a year of recovery and insurers have been proud partners helping employers […]
After a tough couple of years, Canadians continue to face several challenges against an increasingly turbulent economic landscape. While most coronavirus restrictions were lifted in late spring 2022, the seventh wave of the pandemic arrived in July alongside rising inflation, which is compounding prices from the gas pump to the grocery store. Though the 2022 […]
The modern economy is highly uncertain, with inflation and rising interest rates cutting into bottom lines everywhere. Employers are nervous as the cost of capital and the cost of their inputs seems to rise every day. But employees are nervous, too. And since no one knows when inflation will end, it’s difficult for anyone to […]
The Association of Canadian Pension Management is cautioning the Canadian Association of Pension Supervisory Authorities on its revisions to guidelines for capital accumulation plans. The draft guidelines could “change the balance of the existing guidelines in a manner that will give many employers pause about starting or continuing CAP plans that are not defined contribution […]
The Pension Investment Association of Canada is providing feedback on the consultation draft of revisions to the Canadian Association of Pension Supervisory Authorities’ guidelines for capital accumulation plans. If the guidelines are to be considered a minimum standard for plan administration, the increased responsibilities may act as a deterrent to employers choosing to make a […]
The vast majority (90 per cent) of low to moderate income workers say they’d open a long-term savings account if they were offered incentives, according to a new survey by the Defined Contribution Institutional Investment Association and non-profit organization Commonwealth. The survey, which polled nearly 1,000 employees living on low to moderate incomes, found most respondents […]