In the Expert Commission on Pensions’ 2008 review of Ontario’s pension system, it recommended an agency or unit of the provincial government serve as a pension champion. According to the commission, the pension champion’s responsibilities would include working closely with stakeholders, promoting and facilitating innovation in the pension system and leading policy development efforts in […]
A bill currently under consideration by Canada’s senate could hasten the closure of open defined benefit plans, according to Gavin Benjamin, a partner in LifeWorks Inc.’s pension and benefits solutions business. “In our view, this is a potential outcome, particularly with respect to companies for whom the ability to borrow is affected by the bill,” […]
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 […]
The vast majority (95 per cent) of defined benefit pension plan sponsors say higher inflation is impacting their decision to de-risk, with half (50 per cent) saying it’s very impactful, according to a new survey by MetLife Inc. The survey, which polled more than 250 DB pension plan sponsors with at least $100 million or more […]
The average Canadian defined benefit pension plan’s projected benefit obligation fell 3.4 per cent during the third quarter of 2022, from 100.5 per cent to 97.2 per cent, and considerably faster than asset values, according to Aon’s latest pension risk tracker. While market volatility led to asset values decreasing by 0.1 per cent in the […]
An Ontario Superior Court judge awarding $210,000 in costs against the Financial Services Regulatory Authority of Ontario was the most-read story on BenefitsCanada.com over the last week. Here are the five most popular news stories of the week: 1. Ontario court awards $210K in costs against FSRA in Brewers Retail pension case 2. Transition to low carbon economy […]
An article on Stelco Inc.’s $1.3 billion annuity buy-in for one of its defined benefit pension plans was the most-read story on BenefitsCanada.com over the last week. Here are the five most popular news stories of the week: 1. Stelco entering $1.3BN annuity buy-in for DB pension 2. KPMG allowing employees to work remotely from another province, country […]
While a typical Canadian defined benefit pension plan saw negative investment returns in March, it also improved on a solvency and accounting basis, according to a new report by LifeWorks Inc. Last month, the typical DB pension plan used in LifeWork’s monthly pension indices saw investments dip in value by 0.4 per cent as a […]
After navigating the unpredictable markets of the past two decades, some defined benefit pension plan sponsors could be forgiven for wanting to seek out some certainty. But a new threat has emerged in the form of rapidly rising inflation and the possibility of rate increases after decades of persistent lows. The consumer price index increased […]
The second year of the coronavirus pandemic offered defined benefit pension plan sponsors a reprieve from the chaos sown in financial markets during its first year. “A lot of pension plans ended up roughly where they started in 2020, but it was a very bumpy road,” says Gavin Benjamin, a retirement and financial solutions partner […]