The value of a typical Canadian defined benefit pension plan’s assets declined in September, according to LifeWorks Inc.’s latest monthly report. An investment portfolio designed to mimic typical Canadian DB portfolios saw its assets shrink by 2.8 per cent over the month. The value of the benchmark portfolio, which is composed of 50 per cent […]
The average Canadian defined benefit pension plan’s projected benefit obligation fell 3.4 per cent during the third quarter of 2022, from 100.5 per cent to 97.2 per cent, and considerably faster than asset values, according to Aon’s latest pension risk tracker. While market volatility led to asset values decreasing by 0.1 per cent in the […]
Yellow Pages Ltd. has secured the support of enough shareholders to approve a plan to bolster its defined benefit pension plan’s coffers. During a virtual meeting scheduled for Sept. 23, 2022, shareholders are expected to vote on a proposal to advance $24 million to the company’s DB plan. “Our board has approved the use of […]
Canadian defined benefit pension plans’ assets experienced losses of 8.6 per cent in the second quarter of 2022, bringing year-to-date total returns to negative 14.7 per cent, according to a new report by RBC Investor and Treasury Services. It was the most significant decline since the third quarter of 2008, when assets also fell by 8.6 […]
Despite year-to-date asset losses and historically high levels of inflation, most Canadian defined benefit pension plans are reporting increased funded positions in the second quarter of 2022, according to a report by Mercer Canada. It found the median solvency ratio increased from 108 per cent as at March 31 to 109 per cent as at […]
Higher long-term bond yields driven by rising interest rates are lowering the cost of annuity purchases for defined benefit pension plans, says Mary Kate Archibald, a principal at Eckler Ltd. Since January, the cost of an annuity purchase has decreased by between 10 and 15 per cent, as long-term bond yields increased from 1.7 to […]
The average Canadian defined benefit pension plan saw improvements in its solvency position in May, according to LifeWorks Inc.’s latest monthly report. An investment portfolio designed to mimic that of a typical pension saw its assets decline by 0.4 per cent over the month. Despite this, the solvency index, which provides an indication of changes […]
The Association of Canadian Pension Management is calling on the Office of the Superintendent of Financial Institutions to provide more detail on how pension plans can enhance their investment risk management strategies. In an open letter responding to a consultation by the OSFI, Ric Marrero, chief executive officer of the ACPM, said while the paper […]
The Ontario Pension Board, the administrator of province’s public service pension plan, generated a return of 9.4 per cent in 2021. In its yet-to-be released 2021 annual report, the OPB also reported its assets under management had grown to $33.8 billion, up from $31 billion the previous year. It also improved its solvency ratio by […]
The Nova Scotia Teachers’ Pension Plan exceeded its return benchmark in 2021, though its solvency ratio on a growing-concern basis remains underwater, according to its annual report. The defined benefit pension plan’s assets grew by 6.1 per cent last year, reaching $5.856 billion. Net investment returns, however, grew by 9.63 per cent, slightly higher than […]