The Association of Canadian Pension Management and the Pension Investment Association of Canada have sent the federal government their wish lists for actions to help federally regulated pension plans deal with the fallout of the coronavirus, with a focus on measures to help with cash flow, liquidity and a call for broader solvency reform. As […]
Financial hardship is hitting employers across Canada and they’re starting to make difficult choices around cost-cutting measures within their businesses. “Some plan sponsors may be considering changes to their plan design to address these cost concerns during these turbulent times,” said Jana Steele, partner and department chair of the pension and benefits team at Osler, Hoskin […]
Canada’s defined benefit plans have had a rough quarter. According to Aon’s median solvency ratio, DB plans fell to an average solvency of 89.1 per cent at the end of the first quarter, from 102.5 per cent at the end 2019. Mercer’s pension health index also dropped, from 112 per cent at the end of […]
Canadians, like many around the world, have watched from the sidelines as interest rates have plummeted and the markets have dropped significantly over the past couple of weeks, with a devastating toll on both personal retirement savings and employer-sponsored pension and other retirement savings plans. Existing industry concerns about the adequacy of retirement savings in […]
With asset deterioration due to drops in equity markets and a decrease in long-term government bond yields causing an increase in solvency liabilities, pension funds are in a tough position. A Canadian defined benefit solvency funding calculation assumes some plan members will elect to take a commuted-value lump sum, while other members will elect to […]
Air Canada’s domestic registered defined pension plans are expected to maintain a “significant pension solvency surplus,” according to a press release. On Monday, the Montreal-headquartered airline withdrew its previously announced first quarter and full year 2020 guidance, as well as its full year 2021 guidance. The ongoing coronavirus crisis means Air Canada “is facing a […]
The Colleges of Applied Arts and Technology pension plan’s funding status dipped slightly in 2019, to 118 per cent on a going-concern basis from 120 per cent in 2018. In its latest actuarial valuation report, the CAAT attributed the solid status to excellent investment returns over the past 10 years, as well as its membership growth strategy, […]
The OPSEU Pension Trust saw a strong 2019, ending the year with an 11.2 per cent net investment return and maintaining its fully funded status. The plan’s total assets grew from almost $20 billion of net assets in 2018 to almost $22 billion in 2019, according to its 2019 funded status report. In other highlights from […]
The solvency levels of Canadian defined benefit pension plans are down off the back of roiling equity and bond markets in the wake of the coronavirus outbreak. Aon’s latest median solvency ratio survey found DB plans were down 6.7 per cent on average, from 102.5 per cent in early January to 95.8 per cent at […]
The Ontario Court of Appeal has ruled that Bell and its related companies, including Bell Canada, Bell Media Inc., Expertech Network Installation Inc. and Bell Mobility Inc., have been miscalculating the cost-of-living adjustment due to their 35,000 pensioners since 2017. The judgment could cost the telecommunications company up to $100 million and signal the beginning of […]