In the wake of the pandemic-related market volatility that battered already challenged public sector defined benefit plans in the U.S., a recent paper by New York University’s Stern School of Business is arguing that Canadian-style reforms could help secure these plans for the long term. “The COVID-19 pandemic introduced new fissures in state and local […]
The Public Sector Alliance of Canada is asking the federal government to change the way it reports the unfunded liabilities of public sector pension plans, arguing the current practice makes the cost of the plans appear more volatile. The federal government implemented a new discount rate methodology in 2017/18 for pre-2000 pension liabilities. It moved from using a 20-year […]
The coronavirus pandemic is fundamentally changing the future of work and, very likely, the nature of employer-sponsored benefits and pension plans. Looking to the end of the crisis, Canadian consultants see an array of major changes on the horizon, from more flexible benefits plans and mental-health care to an outsourcing of pension administration and the […]
In a letter to the Canada Revenue Agency’s registered plans directorate, the Association of Canadian Pension Management said a new draft bulletin only covers a concern attached to smaller pension plans and shouldn’t apply to larger, employer-sponsored plans. The ACPM said it recognizes the agency’s efforts in providing guidance on apportioning assets and actuarial liabilities in actuarial valuation reports for […]
When Canadian taxpayers are on the hook for public sector pension plan obligations, these institutions must spell that out clearly in their financial reporting, according to a new paper by the C.D. Howe Institute. “Reporting of pension costs as they accrue and net obligations at a point in time is tricky,” wrote William Robson, the organization’s chief […]
While the Pension Investment Association of Canada strongly supports Nova Scotia’s recent pension funding changes, it’s calling on the provincial government to tweak the provision for adverse deviation calculation and access to solvency reserve accounts. Nova Scotia’s pension funding changes took effect on April 1, reducing solvency funding to 85 per cent, with any shortfalls required to be […]
Nova Scotia’s Public Service Superannuation Plan reported a 98.5 per cent funded status as of Dec. 31, 2019 and said it will halt cost-of-living adjustments for retirees for the next five years. According to the plan’s 2020 funded health review, its funding policy prohibits indexing when the PSSP’s funded status is below 100 per cent. However, the Public Service Superannuation […]
A new paper is evaluating how global retirement systems are faring in the wake of the coronavirus pandemic and what reforms will be required to facilitate the retirements of future generations. The paper, ‘Building better retirement systems in the wake of the global pandemic,’ by Olivia Mitchell, a professor and executive director of the pension research council […]
Employers that act as pension plan administrators have statutory fiduciary duties that are defined by the plan documents and by governing pension legislation. While those duties continue to apply during the coronavirus pandemic and the resulting market volatility, they require even more careful navigation, as cash flow and internal corporate resources may be strained. Pension regulators across […]
The first quarter of 2020 was rough for Ontario defined benefit pension plans as they experienced the most significant quarterly decline in projected solvency ratios since December 2009, according to a new report by the Financial Services Regulatory Authority of Ontario. In particular, the median projected solvency declined to 85 per cent as of March […]