New draft regulations published in Quebec this summer address policies around annuity purchases for defined benefit pension plans for the first time. Industry stakeholders have been expecting the province’s regulations, which are currently under consultation, since Jan. 1, 2016, when Quebec implemented legislative changes that replaced its solvency regime with enhanced going-concern funding rules and required […]
Public pension plans have received flak over the years, with critics calling for greater transparency around liabilities and fairness for taxpayers. The Canadian Federation of Independent Businesses launched a campaign back in 2011 to raise awareness about public pensions and their cost to Canadians. According to the CFIB, public servants already earn more every year […]
Public pension plans are beneficial to taxpayers, according to a new report that suggests tax revenues created through retiree spending and pension investments may actually exceed what the public pays into them. The report, from a series by the National Conference on Public Employee Retirement Systems in Washington, looks into several arguments used to discredit public pension funds […]
Among those with the most to worry about when a company as big as Sears Canada Inc. enters restructuring proceedings are the members of the pension plan. In the case of Sears employees, the company has a significant shortfall in its defined benefit pension plan despite closing it to new entrants in 2008. According to […]
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 […]
Alongside the Ontario government’s announcement earlier this month regarding a new funding framework for defined benefit pension plans in the province, it also said it would require plan administrators to establish written governance and funding policies. This move is one of a number of proposed measures designed to protect benefit security for members of defined […]
By 2050, the six countries with the world’s largest pension systems will have a combined funding gap of $224 trillion largely due to demographic trends, according to a new study by the World Economic Forum. The report found Australia, Canada, Japan, the Netherlands, Britain and the United States will face significant challenges in providing for their […]
While Ontario’s proposed solvency changes for defined benefit pension plans may help plan sponsors with funding obligations, they may put plan members in a more precarious position, says Michael Mazzuca, a partner in the pension and employee benefits group at Koskie Minsky LLP in Toronto. “There’s obviously a suggestion that, in addition to the emphasis on going […]
While the going-concern funding levels of Ontario’s defined benefit pension plans have improved slightly, the solvency picture remains stagnant, according to the Financial Services Commission of Ontario. In its 2016 report on the funding of 1,333 defined benefit pension plans, the regulator found the median funded ratio on a going-concern basis had climbed slightly to […]
The majority of salaried retirees and employees, along with unsecured creditors, voted in favour of Stelco Inc.’s restructuring plan in meetings on Thursday afternoon. Under the plan, Stelco will no longer be responsible for administering the salaried group’s pension plans and other post-employment benefits. The company taking over Stelco, Bedrock Industries Group LLC., will contribute […]