A new report from the C.D. Howe Institute is recommending a longer deferral period for the Canada Pension Plan and the Quebec Pension Plan, suggesting that retirement savers would benefit from the greater flexibility and security. The report’s authors propose increasing the deferral period by five years, to age 75 from 70. They also suggest that deferring the […]
The Canadian Association of Pension Supervisory Authorities has published draft guidance for plan administrators and third-party consultants to help them search for missing pension members. The task of locating members and beneficiaries has often placed a significant burden on pension plan administrators. They can’t complete plan windups (including partial terminations) until they’ve distributed all pension […]
The upcoming enhancements to the Canada Pension Plan will increase Canadians’ total CPP benefits by about 44 per cent by 2070, according to a new report by the Canadian Institute of Actuaries and the Society of Actuaries. The study, authored by Bonnie-Jeanne MacDonald, senior research fellow at Ryerson University’s National Institute on Ageing and resident scholar at Eckler Ltd., used […]
The Canada Pension Plan (CPP) was designed in 1965 to replace 25 per cent of a person’s pensionable earnings in retirement, a figure that still holds true today. Enrolment is mandatory, with contributions made by both employees and employers, as well as self-employed workers. The program has evolved over time and receives mixed reviews in […]
Extending people’s working lives could provide a windfall of more than $4.6 trillion across Organisation for Economic Co-operation member countries, according to new report by PricewaterhouseCoopers. The population of those over the age of 55 in the 35 OECD countries is on track to rise by almost 50 per cent to more than 500 million people by 2050, the report […]
Quebec has passed its bill eliminating disparities in pension and supplementary group benefits plans. The bill was passed on Tuesday with a number of additions to the province’s labour standards, including the following paragraph: “Any distinction made solely on the basis of a hiring date, in relation to pension plans or other employee benefits, that affects employees performing […]
Canadian group annuity sales reached an estimated $1 billion in the first quarter of 2018, according to Willis Towers Watson’s quarterly update. The significant volume of activity is largely due to a single large transaction. Recently, Alcoa Corp. completed an annuity buyout worth more than $700 million for about 2,100 pension plan members across Canada. […]
The reduction in government benefits (38 per cent), life expectancy (27 per cent) and volatility in financial markets (24 per cent) are the most frequently cited trends affecting people’s plans for retirement around the world, according to Aegon’s latest annual retirement readiness survey. The findings are based on the responses of 14,400 workers and 1,600 […]
In comparing the Canada Pension Plan to private pensions, a new study finds the latter face more regulatory hurdles, are more complex and face higher costs as a result. The study by the Fraser Institute reviewed the different regulations governing the CPP in comparison to other plans, including private and public sector pensions, registered retirement […]
A new report by the C.D. Howe Institute says taxpayers are on the hook for the unfunded liability of pension plans for federal employees. In the report, authors William Robson and Alexandre Laurin argue that official figures for federal pension obligations understate future costs and leave many plans seriously underfunded. “The federal government in particular presents […]