In Ontario’s new defined benefit plan funding rules, the provisions for adverse deviation should be based on the plan’s asset mix, and a riskier asset mix should naturally require a higher PfAD, according to the Association of Canadian Pension Management’s submission to the provincial Ministry of Finance. “Using that logic and an understanding that fixed-income […]
Group annuity sales in Canada topped out at a record high of $4.6 billion in 2018, beating 2017’s sales of $3.7 billion, according to the latest data from Sun Life Financial. This represents an acceleration in the market, which had been on the rise, with 2014’s sales hitting $2.5 billion. Strong sales in the last quarter […]
The Actuarial Standards Board is consulting on changes to key components of how the commuted value for a pension plan is calculated. The commuted-value standard is used to determine how much to pay a terminating plan member who chooses to take their pension payment as a lump sum. It’s also a key part of calculating […]
A recent decision from the Ontario Court of Appeal could significantly change the landscape for employers and pensioners involved in bankruptcy proceedings that engage pension plan deficits. The decision, Guarantee Company of North America v. Royal Bank of Canada, released in January, is a construction lien case that makes no mention of pensions. But the […]
Ontario’s defined benefit pension plans had a median solvency ratio of 94 per cent at the end of 2018, according to the Financial Services Commission of Ontario’s latest report. The median ratio represents a decline from the previous quarter, which sat at 101 per cent as of Sept. 30, 2018. More than half (53.9 per cent) […]
Faculty associations at three Ontario universities, as well as certain affiliated unions, have passed a preliminary vote to convert their various existing pension arrangements into a jointly sponsored pension plan. The University of Toronto Faculty Association, the University of Guelph Faculty Association, Queen’s University Faculty Association, United Steelworkers Local 1998, United Steelworkers Local 4120 and United […]
Based on the five options put forward in British Columbia’s consultation on reforming pension solvency rules, the option to replace the current requirements with enhanced going-concern funding requirements is the favoured course of action, according to the Association of Canadian Pension Management. In its letter to the B.C. government in response to the consultation, which […]
Many defined benefit plans’ funded statuses are in relatively good territory, but with an uncertain investment atmosphere on the horizon, is now a good time for plans to consider taking risk off the table by purchasing an annuity? And for plans looking to de-risk in the future, what considerations are there from an investment perspective? […]
The Corporation of the City of York Employee Pension Plan officially transferred the management of its assets and liabilities to the Ontario Municipal Employees Retirement System plan last week, as part of a broader initiative to transfer four pre-OMERS plans from the City of Toronto to OMERS. The City of York plan was closed to […]
Any modifications to federal pension legislation should encourage plan sponsors to continue offering defined benefit pension plans, while helping them fulfil their pension promises to plan members, according to the Canadian Institute of Actuaries. “Fulfilling pension promises is especially important for those plan members who can least afford the risk of benefit reductions, such as those with […]