discount rate – Benefits Canada.com

Expert panel: How interest rates impact DB pension plans

bwolfe — Thu, 07 Dec 2023 14:00:47 +0000

Interest rate levels are critically important to the financial health of defined benefit pension plans. Many DB plans are in their best financial positions in decades, largely due to the dramatic rise in interest rates over the past few years, but decreases in interest rates could pose a major risk for many plans. Changes in […]

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Canadian DB pension plan assets rise 1.8% in March: report

Gideon Scanlon — Tue, 18 Apr 2023 16:30:12 +0000

The funded position of a typical Canadian defined benefit pension plan improved on a solvency and accounting basis in March, according to a new report by Telus Health. During the month, the solvency of the typical Canadian DB plan rose by 0.4 per cent, finishing at 101.7 per cent of its value at the start […]

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Average DB discount rate dipped 0.5% in 2021: report

Gideon Scanlon — Tue, 06 Dec 2022 17:09:33 +0000

The average discount rate used by Canadian defined benefit pension plans at the end of 2021 was 0.5 per cent higher than the previous year, according to an annual report from LifeWorks Inc. Drawing from figures submitted by 83 Canadian public DB plans, the report found the average plan used a three per cent discount […]

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Ontario Pension Board generates 9.4% return in 2021

Gideon Scanlon — Tue, 10 May 2022 13:01:10 +0000

The Ontario Pension Board, the administrator of province’s public service pension plan, generated a return of 9.4 per cent in 2021. In its yet-to-be released 2021 annual report, the OPB also reported its assets under management had grown to $33.8 billion, up from $31 billion the previous year. It also improved its solvency ratio by […]

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OPTrust posts 15.3% net return, driven by private equity investments

bwolfe — Wed, 09 Mar 2022 14:30:09 +0000

The OPSEU Pension Trust is reporting a net investment return of 15.3 per cent for 2021, a result driven by strong private equity performance. In its 2021 funded status report, the OPTrust said its private equity portfolio generated a net return of 52.2 per cent. By comparison, public equities provided a net return of 12.9 […]

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Nova Scotia’s PSSP sees 15.75% return: annual report

Gideon Scanlon — Wed, 30 Jun 2021 19:00:10 +0000

Nova Scotia’s Public Service Superannuation Plan saw a 15.75 per cent return net of investment fees for the fiscal year 2020/21, generating $1 billion in total investment income. The plan’s funded status increased to 97.9 per cent at March 31, 2021, from 91.4 per cent the previous year. Its total net assets were about $7.2 […]

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A look at the practical challenges of meeting target allocations in private markets

mschmit — Fri, 20 Mar 2020 07:26:50 +0000

When it comes to private markets, implementing target allocations is easier said than done. At the Canadian Investment Review’s Plan Sponsor Exchange conference in February, a panel featuring Julie Cays, chief investment officer at the Colleges of Applied Arts and Technology pension plan; Sean Hewitt, chief executive officer at the Toronto Transit Commission Pension Fund […]

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CAAT sees slight dip in funded status, lowers discount rate

mschmit — Thu, 12 Mar 2020 03:06:39 +0000

The Colleges of Applied Arts and Technology pension plan’s funding status dipped slightly in 2019, to 118 per cent on a going-concern basis from 120 per cent in 2018. In its latest actuarial valuation report, the CAAT attributed the solid status to excellent investment returns over the past 10 years, as well as its membership […]

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CAAT funding status reaches 120%

mschmit — Mon, 11 Mar 2019 06:16:32 +0000

The Colleges of Applied Arts and Technology pension plan has reached a going-concern funding status of 120 per cent as of Jan. 1, 2019, up from 118 per cent last year. Along with the increased funded status, the plan’s funding reserve rose from $2.3 billion to $2.6 billion. The CAAT’s funding policy includes six funding […]

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Discount rates used by public pensions too high: report

mschmit — Fri, 01 Feb 2019 11:57:52 +0000

The high discount rates used by many Canadian public-sector pension plans increase the risk they won’t have enough funds to meet future obligations, according to new research by the C.D. Howe Institute “Employers and employees have an incentive to keep the discount rate high in order to reduce the contributions they pay today,” said Constance Smith, co-author […]

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