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 […]
Financial hardship is hitting employers across Canada and they’re starting to make difficult choices around cost-cutting measures within their businesses. “Some plan sponsors may be considering changes to their plan design to address these cost concerns during these turbulent times,” said Jana Steele, partner and department chair of the pension and benefits team at Osler, Hoskin […]
Canadians, like many around the world, have watched from the sidelines as interest rates have plummeted and the markets have dropped significantly over the past couple of weeks, with a devastating toll on both personal retirement savings and employer-sponsored pension and other retirement savings plans. Existing industry concerns about the adequacy of retirement savings in […]
With asset deterioration due to drops in equity markets and a decrease in long-term government bond yields causing an increase in solvency liabilities, pension funds are in a tough position. A Canadian defined benefit solvency funding calculation assumes some plan members will elect to take a commuted-value lump sum, while other members will elect to […]
The nearly four-month lockout at the Federated Co-operatives Ltd. refinery in Regina over pension changes could be nearing an end. However, while Unifor has accepted recommendations from an independent mediator, the Co-op Refinery Complex said in a statement it’s unable to accept the recommendations in full and will have to make modifications out of its […]
Air Canada’s domestic registered defined pension plans are expected to maintain a “significant pension solvency surplus,” according to a press release. On Monday, the Montreal-headquartered airline withdrew its previously announced first quarter and full year 2020 guidance, as well as its full year 2021 guidance. The ongoing coronavirus crisis means Air Canada “is facing a […]
The gross income replacement levels for a typical capital accumulation plan have decreased by more than 10 per cent during the past 11-year bull market, according to a report by Eckler Ltd. After the financial crisis in late 2008 the economy rebounded, but more than a decade of strong stock returns weren’t enough to markedly improve the amount of income […]
The Ontario Court of Appeal has ruled that Bell and its related companies, including Bell Canada, Bell Media Inc., Expertech Network Installation Inc. and Bell Mobility Inc., have been miscalculating the cost-of-living adjustment due to their 35,000 pensioners since 2017. The judgment could cost the telecommunications company up to $100 million and signal the beginning of […]
While the Pension Investment Association of Canada is applauding proposed changes to Manitoba’s Pension Benefits Act that would allow for in-plan solvency reserve accounts for defined benefit pension plans, it’s calling on the province to make further reforms. In a letter to Manitoba’s Finance Minister Scott Fielding, the PIAC said the suggested amendments, which were introduced in November […]
Quebec’s closed the door on the idea of forming a pension benefits guarantee fund to protect members in retirement plans sponsored by employers that have declared bankruptcy. Finance Minister Éric Girard said Tuesday that no such measure would be included in the provincial budget set to be released March 10, reported Radio-Canada. In explanation, Girard […]