The funded status of the Segal Group Inc.’s model multi-employer pension plan fell from 95 per cent to 86 per cent during the first quarter of 2020, according to a new report by the firm. The model’s portfolio is comprised of 55 per cent equities and 45 per cent bonds. Overall, its investments saw dismal […]
While the coronavirus pandemic certainly doesn’t change pension plan sponsors’ fundamental fiduciary duty to their plan members, the crisis is creating circumstances that will test how that responsibility manifests. Fiduciary duty arises when one party has a certain vulnerability in respect to another party, said Kenneth Burns, partner at Lawson Lundell LLP, in a webinar roundtable hosted by the […]
The Office of the Superintendent of Financial Institutions is relaxing its freeze on portability transfers to automatically permit pension plan members who are eligible for early retirement to transfer their commuted values to locked-in savings vehicles, subject to certain conditions. At the end of March, the OSFI introduced a temporary freeze on portability transfers, meaning […]
The union representing 400 Dominion Diamond Mines employees is attempting to guarantee that the company honours its multi-million dollar pension shortfall as it goes through a court-ordered creditor protection process. If the shortfall isn’t prioritized, the Union of Northern Workers said it’s concerned that active members and pensioners would all face reduced pensions. “How much […]
The Pension Investment Association of Canada is calling on provincial governments to allow pension plan sponsors to opt out of making any special payments for a period of six to 12 months or until there’s greater visibility of the end of the fallout from the coronavirus crisis. “We recommend that no conditionality or approval requirements be applied […]
The Nova Scotia Teachers’ Pension Plan is bracing for the effect of the coronavirus pandemic on its assets as it reported a 78.2 per cent funded status on a going-concern basis — up from 75.3 per cent at the end of 2018 — and a $1.497-million deficit in its 2019 annual results. “While the plan remains […]
Provincial and federal regulators are beginning to roll out relief measures for defined benefit pension plan sponsors, ranging from administrative filing extensions to freezes on commuted-value transfers. At the federal level, the government announced Thursday it will be halting solvency special payments for federally regulated DB plans until the end of 2020 to ensure plan […]
The federal government is halting solvency special payments for federally regulated defined benefit pension plans until the end of 2020. The moratorium on payments under the Pension Benefits Standards Act is aimed at ensuring that employers have financial resources to continue their operations and pension plans, as well as to protect plan members, said the […]
With coronavirus causing market volatility and an increase in the size of solvency liabilities, defined benefit pension plans are feeling the impact. One potential way for plan sponsors to ease the pain is by performing an early actuarial valuation to capture year-end 2019 numbers. While most Canadian jurisdictions require plans to file valuations every three years, […]
The Association of Canadian Pension Management and the Pension Investment Association of Canada have sent the federal government their wish lists for actions to help federally regulated pension plans deal with the fallout of the coronavirus, with a focus on measures to help with cash flow, liquidity and a call for broader solvency reform. As […]