pension surplus – Benefits Canada.com

How are Canadian DB pension plan sponsors making use of surplus funds amid positive funded status environment?

bmcgovern — Thu, 26 Sep 2024 15:00:26 +0000

With many Canadian defined benefit pension plans in a strong funded position, plan sponsors, particularly those with unionized workforces, are increasingly discussing the use of surplus funds, says Gavin Benjamin, a partner in the retirement and benefits solutions practice at Telus Health. The funded position of a typical Canadian defined benefit pension plan rose on […]

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Ontario’s target-benefit framework too prescriptive, could lead to increased plan costs: ACPM

bwolfe — Wed, 28 Aug 2024 19:00:38 +0000

Ontario’s proposed regulatory framework for target-benefit pension plans includes requirements that are more prescriptive than other jurisdictions and could result in additional costs and reduced benefits for plan members, said the Association of Canadian Pension Management. In an open letter, the ACPM noted the inclusion of policies — such as those determining funding and benefits, […]

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Ontario Teachers’ returns 4.2% for first half of 2024

bwolfe — Thu, 15 Aug 2024 13:00:13 +0000

The Ontario Teachers’ Pension Plan earned a net return of 4.2 per cent for the first six months of this year. The result came as the pension fund earned net investment income of $10.8 billion for the period. The Ontario Teachers’ had $255.8 billion in total net assets at June 30. Read: Ontario Teachers’ returns 1.9% for 2023 The results for […]

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Kodak outsourcing US$1.6TN of pension assets to maximize overfunded status

bmcgovern — Wed, 06 Mar 2024 14:00:46 +0000

Eastman Kodak Co. is disbanding a team that manages the firm’s US$1.6 trillion of pension investments and moving its management to Boston-based investment consulting firm NEPC. In a statement, the organization said as at Dec. 31, 2022, the fair value of plan assets was approximately $3.7 billion, with the projected benefit obligation of the plan […]

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2023 Investment Innovation Conference: The evolving role of fixed income in hedging risk, enhancing yields

lbailey — Thu, 18 Jan 2024 12:50:23 +0000

As the objectives of defined benefit pension plans have evolved, so too have institutional investors’ reasons for including fixed income allocations in a portfolio, from adding diversification and offsetting negative returns in equity to liquidity management and capital preservation, said Ashwin Gopwani, managing director and head of retirement solutions at Sun Life Capital Management, during the Canadian Investment […]

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Top 5 HR, benefits, pension and investment stories of the week

bwolfe — Fri, 19 May 2023 13:00:33 +0000

An article on how defined benefit pension plan sponsors can use a surplus was the most-read story on BenefitsCanada.com over the last week. Here are the five most popular news stories of the week: 1. Expert panel: How DB pension plan sponsors can use surplus 2. Median solvency ratio of Ontario DB pensions rose to 115% in Q1 […]

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Expert panel: How DB pension plan sponsors can use surplus

bwolfe — Tue, 16 May 2023 13:00:02 +0000

In 2022, the typical defined benefit pension plan achieved an investment return of roughly negative 12 per cent. However, due to dramatic increases in bond yields and a subsequent decrease in pension liabilities, many pension plans ended 2022 with the same — or better — solvency funded level that they had at the beginning of […]

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Ontario tribunal determines employer entitled to $320K pension surplus

bwolfe — Thu, 22 Dec 2022 14:00:16 +0000

The Financial Services Tribunal of Ontario has awarded an employer with a $320,000 pension surplus, despite the plan’s trust agreements’ silence as to surplus entitlement. “The requirements for an employer to receive 100 per cent of surplus are strict, but the tribunal took a practical [approach] as opposed to a narrow interpretive approach to the […]

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