Two experts weigh in on the merits and drawbacks of taking the traditional annuities route versus opting for the newer do-it-yourself option. Marco Dickner, retirement risk management leader for Willis Towers Watson in Canada Although annuity purchases have become an important pension risk management option over the last decade, a countertrend is emerging for plan […]
While solvency funding relief helped Canada’s pension funds withstand the turbulence of 2020, a long-term vision with an eye to a more robust funding framework would offer better support, according to pensions experts. Responding to the crisis, the federal government launched a consultation last fall on measures to alleviate pension solvency funding requirements for defined […]
A first-quarter rally in both the equity markets and bond yields have propelled defined benefit pensions to their best funded positions in more than a decade, according to a report by Morneau Shepell. Based on raw data from the Canadian Institute of Actuaries and internal sources that Morneau Shepell uses to compile its indices, the […]
Canada’s defined benefit pension plans’ funded positions continue to improve in 2021, ending the first quarter at their highest levels in more than 20 years, according to Mercer Canada’s pension health index. It found solvency ratios increased from 114 per cent at the end of 2020 to 124 per cent at the end of March 2021, with the median solvency ratio […]
Long before the global pandemic, jurisdictions across Canada were embarking on pension solvency reform, with some moving from strict 100 per cent solvency funding requirements to going-concern plus models, which incorporate a funding cushion. Low interest rates, which make solvency funding very expensive, have been a key driver pushing the going-concern plus model, says Dean […]
Canadian defined benefit pension plans maintained their solvency levels through the second quarter of 2019, according to Mercer’s latest pension health index. The index, which represents the solvency ratio of a hypothetical plan, reached 106 per cent as of June 30, 2019, an increase from 102 per cent at the year’s outset. The current solvency […]
The final quarter of 2018 was choppy for pension managers’ pooled funds as they posted a median return of negative 5.6 per cent, contributing to the year’s overall median return of negative 2.7 per cent, according to Morneau Shepell Ltd.’s pension performance universe. “The bond market posted a positive return of 1.4 per cent for 2018,” said Jean […]
DB plans see third consecutive quarter of increased solvency levels.
Canadian pensions’ solvency ratio holds steady through Q1.
The union representing workers at U.S. Steel Canada Inc. is cautiously optimistic a proposed acquisition of the company by a U.S.-based holding company will lead to a “good final deal” for retirees at the struggling steelmaker. “We have been in discussions for quite some time with the province and various potential buyers about a restructuring […]