Ontario’s defined benefit pension funds returned an average 2.9 per cent in the fourth quarter of 2022 while plan liabilities continued to benefit from a rising interest rate environment, according to the Financial Services Regulatory Authority of Ontario’s latest solvency report. It also found the majority of plans remained fully funded on a solvency basis […]
An article on how much money Canadians think they’ll need in retirement was the most-read story on BenefitsCanada.com over the last week. Here are the five most popular news stories of the week: 1. Canadians believe they need $1.7 million in savings to retire: survey 2. FSRA promoting retirement planning with Pension Awareness Day 3. Survey finds 59% of […]
The Financial Services Regulatory Authority of Ontario is promoting retirement planning with its inaugural Pension Awareness Day on Feb. 16. Through the event, the FSRA is aiming to spark conversations about retirement savings and inspire employees to take full advantage of employer-sponsored pension plans, says Caroline Blouin, executive vice-president of pensions at the FSRA, noting […]
The Financial Services Tribunal of Ontario has awarded an employer with a $320,000 pension surplus, despite the plan’s trust agreements’ silence as to surplus entitlement. “The requirements for an employer to receive 100 per cent of surplus are strict, but the tribunal took a practical [approach] as opposed to a narrow interpretive approach to the […]
While pension plan administrators know about their plan members’ employment history and salaries, they may not expect to learn much about their personal lives, including how often they text their spouse or whether they have family dinners every night. However, in most jurisdictions, the spouse of a defined benefit plan member is entitled to a joint […]
An article on the FIRE — financial independence and retiring early — concept was the most-read story on BenefitsCanada.com over the last week. Here are the five most popular news stories of the week: 1. Is the concept of financial independence and early retirement truly feasible? 2. Expert panel: Can pension administrators deny benefits to plan members who don’t […]
Despite concerns about global economic headwinds, the Bank of Canada’s successful efforts to curb inflation is capturing the attention of institutional investors, says Kathrin Forrest, a Toronto-based equity investment specialist at Capital Group Inc. “It’s surprised market participants,” says Forrest, referring to the central bank’s Oct. 26 decision to increase interest rates for the sixth […]
The Financial Services Regulatory Authority of Ontario has released its final pension deregistration guidance, which identifies the documents, information and timeframes that are required under exemptions from the Pension Benefits Act to avoid a plan’s deregistration under the Income Tax Act. Maintaining ITA registration will permit the pension plan and its members to continue to […]
Matching employer contributions in capital accumulation plans are as close to free money as employees can legally get. “You’re not changing your risk — because the money goes to the same fund it would otherwise — and you’re getting two-times the return,” says Eric Monteiro, senior vice-president of group retirement services at Sun Life Financial […]
The projected solvency ratio of Ontario’s defined benefit pension plans declined in the second quarter of 2022, according to a new report by the Financial Services Regulatory Authority of Ontario. In its quarterly report, the FSRA found the median projected solvency ratio reached 110 per cent on June 30, 2022, down two per cent from […]