Many defined benefit plans’ funded statuses are in relatively good territory, but with an uncertain investment atmosphere on the horizon, is now a good time for plans to consider taking risk off the table by purchasing an annuity? And for plans looking to de-risk in the future, what are the considerations from an investment perspective? […]
In the third quarter of 2018, Canadian defined benefit pension plans reached their highest solvency ratio of any quarter since November 2000, according to Mercer’s latest pension health index. Representing a hypothetical plan, the index reached a 112 per cent solvency level as of Sept. 28, 2018, up from 107 per cent at the ned of […]
The pension and retirement savings was once again the growth leader in the life and health insurance industry in 2017, according to the Canadian Life and Health Insurance Association’s annual fact book. Of the $651 billion held in employer-sponsored pension plans last year, the industry was responsible for managing $152 billion, which is up from […]
While there are nuances, I consider a target-benefit plan to be one that determines benefits to members on a defined benefit basis while setting out employer contributions on a defined contribution basis. To allow for that mix, target-benefit plans permit benefit reductions when contributions fall short. My goal is to share what I consider an […]
As part of a comprehensive plan review, the Ontario Municipal Employees Retirement System is looking at a number of changes, including to indexing provisions. While a plan executive is offering a more nuanced version of the issue, the Canadian Union of Public Employees union is sounding the alarm about possible changes. Read: Boosted by public equities, […]
Alcoa Corp. is freezing its defined benefit pension plan for Canadian and U.S. salaried employees. Effective Jan. 1, 2021, the change affects approximately 800 workers who will move into defined contribution plans. The defined benefit plan will close on Dec. 31, 2020, with benefits earned up to that point protected, according to the bauxite and aluminum producer’s fourth […]
Despite strong funding positions, plan sponsors are taking a proactive approach when it comes to managing pension investments and risk, according to Aon Hewitt. Its latest pension risk survey, which covers 124 pension plans across the country, found plan sponsors are adapting their funding and investment strategies in response to new pension regulations. “Plan sponsors […]
A recent Benefits Canada pulse survey teases out the risks that really keep pension funds up at night.
What’s the best way to transfer DB risk? Here are three strategies.
J. C. Penney says it will reduce its US$5 billion pension benefit obligation by up to 35% without requiring any cash contributions from the company.