Ontario’s defined benefit pension funds returned an average 2.9 per cent in the fourth quarter of 2022 while plan liabilities continued to benefit from a rising interest rate environment, according to the Financial Services Regulatory Authority of Ontario’s latest solvency report. It also found the majority of plans remained fully funded on a solvency basis […]
Few people have as clear a perspective on the differences between public sector defined benefit pension plans in Canada and the U.S. as Paul Matson. “I know the Canadian system,” said the executive director of the Arizona State Retirement System, during a session at the Canadian Investment Review‘s 2022 Investment Innovation Conference. “Before [the Alberta Investment […]
The Association of Canadian Pension Management’s top priority in 2023 is convincing Canada’s senate to amend or block the passage of Bill C-228, according to Ric Marrero, the association’s president and chief executive officer. “Our first priority is to keep monitoring Bill C-228, which is now in the senate. Our members think it would cause […]
The aggregate funded ratio for Canadian defined benefit pension plans increased from 96.9 per cent to 100.8 per cent during 2022, according to Aon’s latest pension risk tracker. The tracker, which calculates the aggregate funded position on an accounting basis for companies in the S&P/TSX composite index with DB plans, also found pension assets lost […]
Similar to 2022, the coming year will present both challenges and opportunities for defined benefit pension plan sponsors, with the rewards going to plan sponsors that are resilient, embrace change and are willing and able to act when opportunities arise. Several trends that will be top of mind in the year ahead are: Inflation The […]
The average solvency ratio of Canadian defined benefit pension plans grew by 10 per cent in 2022, according to a new report by Mercer Canada. The report, which looked at the overall 2022 performance of more than 500 Canadian DB plans in the consultancy’s pension database, found the median solvency ratio reached 113 per cent […]
A bill currently under consideration by Canada’s senate could hasten the closure of open defined benefit plans, according to Gavin Benjamin, a partner in LifeWorks Inc.’s pension and benefits solutions business. “In our view, this is a potential outcome, particularly with respect to companies for whom the ability to borrow is affected by the bill,” […]
U.S. President Joe Biden is announcing the infusion of nearly US$36 billion to shore up a financially troubled union pension plan, preventing severe cuts to the retirement incomes of more than 350,000 Teamster workers and retirees across the U.S. The money for the Central States Pension Fund is the largest amount of federal aid provided […]
The Saskatchewan government is introducing amendments to its pension legislation that provide additional flexibility for plan sponsors and introduce new decumulation options for members of defined contribution plans. The bill, which passed first reading in provincial parliament last week, includes provisions for DC plan sponsors to offer advanced life deferred annuities and variable payment lifetime […]
Despite concerns about global economic headwinds, the Bank of Canada’s successful efforts to curb inflation is capturing the attention of institutional investors, says Kathrin Forrest, a Toronto-based equity investment specialist at Capital Group Inc. “It’s surprised market participants,” says Forrest, referring to the central bank’s Oct. 26 decision to increase interest rates for the sixth […]