Despite coming improvements to public pension plans, Canada will still be about 10 percentage points behind the average net replacement rate for the typical worker across Organisation for Economic Co-operation and Development countries. Future OECD average replacement rates for the full-career, average-wage worker will reach 63 per cent, according to the organization’s annual report on pension systems […]
Compared to other high-income countries, Canada is doing very little to prepare for the “greying of society,” according to a new study by public policy think-tank the Fraser Institute. Among G7 countries, Canada is the only one without a plan to increase the age of eligibility for government retirement programs, noted the study. The former Conservative federal […]
A new report is recommending the immediate increase of the trigger age for drawing down registered retirement savings, suggesting it should continue to rise with longevity. The report, published by the C.D. Howe Institute, is targeting changes to age-sensitive programs, noting the expected budget crunch for Canadian governments as the workforce ages. It says the rules that dictate when Canadians can start receiving […]
The days of working for one employer and contributing to a single pension plan for an entire career are long over. In fact, 28 per cent of Canadians surveyed by Workopolis Inc. in 2014 had already had between five and 10 jobs, and Statistics Canada figures show defined benefit membership is continuing to fall while […]
Defined benefit pension plans have long included formulas for integrating the Canada Pension Plan into their contributions and benefits design. But with CPP contributions set to rise in 2019, the question of integration will be a consideration for the sponsors of defined contribution pension plans as well. CPP integration isn’t a particularly common feature of […]
New Brunswick has tabled amendments to the province’s Financial Administration Act in an effort to prohibit special pensions or payments to staff as part of leadership changes. “Your government is taking action to fix the problem of outgoing governments of the past awarding special pensions or payments to staff after an election,” said New Brunswick Premier Brian Gallant, in a […]
The large number of Canadians who fear the Canada Pension Plan won’t be around when they retire reflects a misplaced belief, said Canada Pension Plan Investment Board president and chief executive officer Mark Machin on Tuesday. Machin discussed the sustainability of the national pension plan during his keynote speech at a 2017 symposium held in Toronto by Advocis, the […]
Ontario’s fall economic statement confirmed a number of previously announced frameworks for the province’s pension, health-care and employment programs, including a look at addressing decumulation. The statement, delivered by Ontario’s Finance Minister Charles Sousa on Tuesday, noted the government is exploring new approaches to help retirees draw down their savings in an efficient, cost-effective manner so their savings […]
The Office of the Superintendent of Financial Institutions has laid out its progress on a number of pension responsibilities in its 2016-17 report on plans and priorities, published Friday. One area of progress is pooled retirement pension plans, notes the report. Since OSFI acquired new responsibilities under the PRPP multilateral agreement, which came into effect in June 2016, […]
Unionized employees at a Quebec-based aluminum smelter are rejecting a proposed change that would move them to a two-tiered pension arrangement from a defined benefit plan. The Syndicat des Métallos/United Steelworkers Local 9700 says employees at the Bécancour, Que., smelter “categorically reject a discriminatory, inferior pension plan for the next generation of workers.” The proposed change would keep defined benefit plans […]