The median solvency ratio for defined benefit plans regulated by the Financial Services Commission of Ontario was 94 per cent in the last quarter of 2017, up from 91 per cent at the end of September, according to the organization’s quarterly report. More than half (57.2 per cent) of plans had a solvency ratio between 85 […]
The ongoing Sears Canada Inc. and Wabush Mines restructurings illustrate that there’s perhaps nothing as vexing in insolvency situations as the position that pension deficits occupy in the pecking order of creditor priorities. Indeed, many observers cite the issues over the status of the deemed trust that most provinces’ legislation imposes on pension deficits as […]
Strong growth and equity markets have helped to boost the performance of pooled fund managers to a median return of 8.6 per cent before management fees in 2017, according to a new report from Morneau Shepell Ltd. The results reflect about 324 pooled funds from almost 50 investment management firms with a combined market value of […]
Whether plan sponsors expect a bear or a bull market in 2018, if they’re in a position to de-risk their pension plan, they should do it now, according to two investment consultants who spoke at an event in Toronto on Thursday. “From our perspective, if you look at the world over the last six years, […]
As 2017 draws to a close, we turn our attention to the new year. As usual, there’s a lot happening in the Canadian pension environment. Below are four pension trends to watch for in 2018. 1. Canada Pension Plan/Quebec Pension Plan reform The Canada Pension Plan enhancements will be phased in from Jan. 1, 2019, and the Quebec […]
Bankruptcy and its impact on company’s pension plans was a big story in 2017, with Sears Canada Inc. and Stelco Inc. grabbing the most headlines of the year. Benefits Canada rounds up your favourite pension stories of 2017: Sears faces $300M retirement benefit shortfall as retailer seeks CCAA protection 2017 Top 100 Pension Funds Report: The evolution of DB […]
The Ontario financial regulator’s move to wind up the Sears Canada Inc. pension plan will be proceeding to a hearing after a creditor of the struggling retailer requested one. Sears itself didn’t request a hearing, which interested parties had the ability to do up until a mid-December deadline. The creditor, 1291079 Ontario Ltd., made the request on […]
With the pension woes at Sears Canada Inc. in the spotlight, the political parties have been busy touting their solutions to the defined benefit conundrum. This fall, parliamentarians from both the Bloc Québécois and the New Democratic Party put forth private members’ bills aimed at boosting the priority of pension obligations during bankruptcy and restructuring […]
Ontario has published a description of its new funding framework for defined benefit pension plans, including details on how the provision for adverse deviations will work under new going-concern rules. Under the proposed new funding framework, the provision for adverse deviation — a percentage used to determine additional contributions in respect of the normal cost and going-concern […]
The Financial Services Commission of Ontario has appointed Morneau Shepell Ltd. to take over the continuing administration of Stelco Inc.’s five existing defined benefit pension plans as of Jan. 1, 2018. The five pensions plans will continue without any disruption to retirees’ monthly payments, according to a news release, which noted Morneau Shepell would contact all plan members in the […]