Historically, Canadian pension accounting standards were viewed as one of the barriers encountered by employers wishing to reduce pension risk. These barriers included the ability to defer and amortize experience gains and losses, the inclusion of expected additional returns from risky assets in the expected return on assets (EROA) calculation, and the ability to use a smoothed value of assets to calculate the EROA.
Due to recent gun violence in the U.S., the California State Teachers’ Retirement System (CalSTRS) Investment Committee made a socially responsible investment decision to divest “from firearms companies that manufacture weapons that are illegal in California.” “I think we’ve taken appropriate action, given the unspeakable and tragic loss of life that occurred in Connecticut last […]
ith more than $40 billion in assets and 270,000 members and pensioners, the Healthcare of Ontario Pension Plan (HOOPP) saw a return of 12.2% in 2011. The organization has also maintained its fully funded status through levels of market uncertainty not seen in decades. How has HOOPP managed? By focusing on its own weaknesses, applying a liability-driven investment (LDI) strategy and carefully considering fresh opportunities.
Sonia Mak, a partner with Borden Ladner Gervais, LLP, identifies key considerations for administrators of pension and benefits plans that help to evaluate potential outsourcing partners. The weight each point carries will vary with the nature of the mandate and the expectations of the administrator.
When global HR consulting firm Mercer decided in November 2012 to transfer much of its Canadian pension and group benefits outsourcing business to competitor Morneau Shepell, it surprised many industry watchers. It also got them thinking. What prompts one consulting firm to invest in outsourcing and another to focus elsewhere? Bill Morneau, executive chairman of […]
Employees are staying into the workforce for much longer than their parents and grandparents did. There are both social and financial reasons driving this trend. Our top five pension-related stories from 2012 explore these trends, in addition to how plan sponsors are adjusting.
Canadians now are living longer and healthier lives than the generations past. According to Statistics Canada, Canadians are already living about 20 years past age 65 and the number of centenarians has increased by more than 25% since 2006. And, the number of seniors aged 65 and over increased by 14.1% since 2006.
At Benefits Canada's fourth annual Defined Benefit Summit in Toronto last week, the theme Keeping DB Alive was taken to heart as speakers not only probed the reasons behind the struggles of DB plans but also discussed strengths and survival strategies, including de-risking and exploring small cap and emerging markets.
The 2012 DB Summit, held today in Toronto, will explore recommendations and practical strategies to make DB sustainable for future generations of Canadian workers.
On Nov. 15, 2012, regulations under Ontario’s Pension Benefits Act (PBA) were filed regarding the use of letters of credit (LC) to cover a portion of an employer’s solvency payments into a DB pension plan. These new regulations modify previously announced changes to the PBA (effective Jan. 1, 2013) that had not yet come into force.