Finance’s toughest problem just got a whole lot trickier, thanks to the quandary of inflation. Legendary economist William F. Sharpe sealed his place in history when he collected the 1990 Nobel Memorial Prize in Economic Sciences for his work on investment decision-making, but in defined contribution pension circles, the emeritus professor at Stanford University is […]
An article on the potential impacts of Alberta withdrawing from the Canada Pension Plan was the most-read story on BenefitsCanada.com over the last week. Here are the five most popular news stories of the week: 1. Employers raising concerns over Alberta leaving CPP, but expert says move could yield benefits for workers 2. Co-operators acquiring Smart Employee Benefits […]
Similar to 2022, the coming year will present both challenges and opportunities for defined benefit pension plan sponsors, with the rewards going to plan sponsors that are resilient, embrace change and are willing and able to act when opportunities arise. Several trends that will be top of mind in the year ahead are: Inflation The […]
Canadians’ total pension wealth increased by 7.9 per cent in 2021 to reach nearly $4.9 trillion by the end of year, according to a new report by Statistics Canada. It found revaluations of pension asset prices — largely due to equity market gains — increased pension wealth by $259.4 billion in 2021. On average, pension […]
The Association of Canadian Pension Management is calling on the federal government and capital accumulation plan sponsors to support members’ financial wellness by focusing on decumulation. In a new white paper, the ACPM proposed the creation of a “retirement dashboard” that informs retirees of their available sources of retirement income — including government retirement benefits, […]
Capital accumulation plan member outcomes saw modest increases in the third quarter, due to high annuity rates that shielded members from modest investment market declines, according to a new report by Eckler Ltd. It found a typical male member retiring at the end of September achieved a gross income replacement ratio of 60.3 per cent […]
The maximum pensionable earnings under the Canada Pension Plan for 2023 is increasing to $66,600 from $64,900 in 2022. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada, according to a press release from the Canada Revenue Agency. Contributors who earn more than $66,600 in 2023 […]
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 […]
An article on Canada’s ranking in retiree well-being was the most-read story on BenefitsCanada.com over the last week. Here are the five most popular news stories of the week: 1. Canada drops to No. 15 in retiree well-being global rankings: report 2. Court rules employers must include electronic tips under pensionable earnings 3. Expert panel: How employers can support […]
A gig worker by any other name would be a lot more expensive. In most jurisdictions, Uber Technology Inc. drivers and their app-based brethren are classified as independent contractors and not employees. As contractors in Canada, they’re not entitled to minimum wage, employer Canada Pension Plan and employment insurance contributions or to participate in tax-advantaged […]