About a year ago, Benefits Canada introduced a few new columns and features, including our Head to Head, where every month we choose a hot industry question and open up a two-person debate. I’m often tempted to join in the discussion, but ultimately fall on the side of restraint. This month, though, I can’t resist […]
The Swedish word “tack” translates to “thank you,” which is precisely what IKEA is saying to employees with its Tack! loyalty program. In Canada, the program operates as a deferred profit-sharing plan and is part of employees’ total rewards package. “The [program] was launched in 2013 based on the wish of IKEA founder Ingvar Kamprad […]
With companies finding themselves strapped for cash in the wake of the coronavirus, are plan sponsors scaling back on the company match in capital accumulation plans? Looking at the bigger picture in the U.S., companies are more focused on keeping their businesses running than on their defined contribution plans, says Peg Knox, chief operating officer […]
A new report by the C.D. Howe Institute is recommending the federal government amend legislation to allow Canadians to buy life annuities within a tax-free savings account. It also suggested the government modifies the draft legislation creating advanced deferred life annuities and variable payment life annuities to make them both available within a TFSA. “More than 45,000 employers […]
As pension regulators move forward with legislation permitting annuity options for certain capital accumulation plans, the Canadian Life and Health Insurance Association is calling on the federal government to make flexible annuities available for registered retirement savings plans, registered retirement income funds and tax-free savings accounts. In March 2019, the federal budget proposed enabling advanced life deferred annuities for […]
In a new white paper, the Association of Canadian Pension Management is urging the federal government to reform the Income Tax Act rules for registered pension plans. In the ACPM’s view, ITA reforms are required to build on government initiatives aimed at increasing retirement savings by updating the tax rules released in 1992 so they better reflect today’s socioeconomic environment and Canadians’ […]
Many Canadians are interested in learning more about how to manage their money as they make the transition to retirement, according to a new survey by Mackenzie Investments. About half (47 per cent) of baby boomers said they want to know more about how to make the transition to retirement. This age group is slightly more […]
While group retirement compliance is a legal requirement in the U.S., Canadian plan sponsors only have a set of guidelines and best practices to follow. These are in place to help plan sponsors maintain fiduciary responsibility by keeping the interest of the plan member at the forefront of decisions regarding their group retirement plan. One […]
As a solution to employee inertia, many plan sponsors with defined contribution arrangements are looking at setting automatic features as their plan’s default option. When the Royal Bank of Canada redesigned its DC plan in 2012, it introduced auto-enrolment for all new plan members following a six-month waiting period. Before the change, employees had a […]
Canadian insurers paid out $98 billion in benefits in 2018, an increase of seven per cent over 2017, according to the Canadian Life and Health Insurance Association’s annual fact book. Similar to previous years, this was led by retirement benefits from annuities ($49 billion), health benefits for prescription drugs and extended health providers like dentists […]