Former Sears Canada Inc. employees are already feeling the impact of the company’s restructuring proceedings as they receive letters informing them of cuts to severance payments and health benefits along with bad news for those looking at commuting their pensions. In one letter, the company informed an existing employee that “no further payments are going to be […]
Despite all of the worries over costs, more than half of employers surveyed by Benefits Canada expect benefits to be more generous 20 years from now. The research, undertaken by Benefits Canada as part of its 40th anniversary celebrations, found 51 per cent of 191 executives at Canadian companies surveyed this spring hold that view. Another 37 per cent of […]
As part of its celebration of its 40th anniversary, Benefits Canada followed up on research undertaken five years ago into plan sponsors’ attitudes towards their pension and benefits plans. How do the results today compare to the 2012 findings? It’s no surprise that, according to Benefits Canada’s research, plan sponsors find costs the biggest challenge […]
It seems the current pension crisis — whether it be over reform of the Canada Pension Plan or high levels of underfunding among private plans — is always the most significant one yet. But as past issues of Benefits Canada going all the way back to the first one in 1977 show, alarm about the […]
Last week’s move by Sears Canada Inc. to file for protection under the Companies’ Creditors Arrangement Act wasn’t a surprise for the company’s retirees, says their lawyer. “The company has been having many challenges for years. Retirees have been engaged with the company for many years,” says Andrew Hatnay of Koskie Minsky LLP, the firm appointed […]
Facing a monthly obligation to put $3.7 million a month into its pension plan to make up for a funding shortfall, Sears Canada Inc. is planning to ask the court to relieve it of its special payments while it restructures. “Sears Canada cannot afford to make these payments as it attempts to restructure under the […]
While Sears Canada Inc. shareholders deal with stock losses as the company moves to file for bankruptcy protection, pension plan members and retirees face worries over a $308.6-million deficit related to its retirement benefit obligations. According to the struggling company’s annual report for 2016, its registered pension plans had a deficit of $110.3 million for that […]
The agreement reached Friday between the City of Montreal and its firefighters does little to lift the uncertainty surrounding Quebec’s legislation requiring municipal workers to contribute equally to their pension funds with employers. The controversial legislation, passed in December 2014 as part of an omnibus pension reform bill, targets municipalities that now account for up to […]
It’s never easy telling employees their pension benefits are getting worse, whether that’s because of a merger, a sale or simply a cost-savings measure. But when it happens, employers should consider several tactics to minimize both employee distress and the possibility of a lawsuit. “They need to be aware of potential constructive dismissal [litigation] that could occur if […]
The Public Sector Pension Investment Board earned a 12.8 per cent net return in its 2017 fiscal year, bringing its net assets under management to $135.6 billion. That’s a significant increase from last year, when it earned a one per cent return. In 2015, it earned a 14.5 per cent return. Read: PSP Investments’ assets generated 1% […]