The federal government’s proposed framework for unclaimed pension balances is fundamentally flawed, according to the Canadian Life and Health Insurance Association. In a letter to the department of finance, Ronald Sanderson, director of policyholder taxation and pensions at the CLHIA, said transferring unclaimed pension balances to a designated entity should be optional rather than mandatory. […]
The Pension Investment Association of Canada has submitted its comments on the federal government’s unclaimed pension balances framework, noting the solution to the problem is the establishment of public sector agencies with a mandate to receive the balances. The letter noted unclaimed balances are a major and growing problem for federally-regulated pension plans. While there has […]
While retirement income security is top of mind for many Canadians, British Columbia’s public sector pension plans are noteworthy models that can be emulated by sponsors seeking plan design solutions, particularly when it comes to governance. Some other Canadian jurisdictions have introduced, or are in the process of developing, pension governance models similar to British Columbia, but […]
Even as regulators move to expand decumulation options for Canadians in defined contribution pension plans, the degree to which employers will actually adopt the solutions available, including variable benefits, remains an open question. Various factors fuel the conundrum, but exposure to liability and litigation risk loom as perhaps the most daunting obstacles. Proponents of safe […]
While there are nuances, I consider a target-benefit plan to be one that determines benefits to members on a defined benefit basis while setting out employer contributions on a defined contribution basis. To allow for that mix, target-benefit plans permit benefit reductions when contributions fall short. My goal is to share what I consider an […]
The Canadian Association of Pension Supervisory Authorities’ latest consultation is seeking feedback on amendments to its guideline No. 8 for defined contribution pension plans, focusing on considerations around decumulation, such as communicating variable benefits, assumptions used in retirement projections and fee disclosure. When it comes to withdrawals from a variable benefits plan, according to the amended guideline, plan administrators […]
The real solution for missing pension plan members is the establishment of a regime that allows plan sponsors to turn over unclaimed balances to a public agency, according to the Pension Investment Association of Canada. “The inability of a plan sponsor to discharge its fiduciary duty for un-locatable members is a function of a public policy […]
The majority of small business owners in Ontario want the government to scrap or delay the Canada Pension Plan enhancements, according to a new survey by the Canadian Federation of Independent Business. Its survey, which polled 2,065 business owners in the province, found 52 per cent would like to see the government delay the enhancements until a review […]
This series of articles examines some actionable ideas to help plan administrators meet the Canadian Association of Pension Supervisory Authorities’ guideline No. 4. Following on from the previous article, which looked at the first five principles of this guideline, this one will cover the next five principles around pension governance. Principle 6: Governance information The sixth principle recommends that […]
As the average income replacement rate for capital accumulation plans continues to trend downwards, can employers mitigate this movement with the Canada Pension Plan’s incoming enhancements? According to a new report by Eckler Ltd., CAP replacement rates fell to a new low at March 31, 2018, settling at 58 per cent for men and 56 per cent for women. These […]