The CPP fund grew to $120.5 billion for the quarter ended June 30, 2007, up from $116.6 billion at the end of the previous quarter. Of the $3.9 billion growth, a 0.7% investment rate of return contributed $805 million in investment earnings, while inflows of CPP contributions not needed to pay current pension benefits added […]
In the Sutherland et al. v. HBC et al. case, the Ontario Superior Court of Justice has endorsed Hudson Bay Company’s right to expand membership in its pension plan to include Zellers and Kmart employees. According to a bulletin from Blakes, the Court found that it is permissible to add employees of related companies to […]
A slumping stock market and a sharp drop in interest rates last month caused a decline of 4.4% in the funded status of a typical U.S. pension plan, says BNY Mellon Asset Management. “Stocks had their worst month in three years, dropping more than 3%,” explains Peter Austin, executive director of BNY Mellon Pension Services. […]
The improved funded status of U.S. pension plans lessened the shareholder equity impact of the switch to new accounting rules, according to a Mercer report. FAS 158, the new accounting standard, requires plan sponsors to recognize the net difference between plan assets and benefit obligations for both pension and other postretirement benefit plans in the […]
A Financial Services Commission of Ontario(FSCO)report has found there was no wrongdoing or waste of pension fund money by anyone associated with the sale of Borealis Capital Corporation to OMERS. “The report confirms what we have known from the beginning—that no wrongdoing occurred,” says David Kingston, chair of the OMERS Administration Corporation. FSCO examined allegations […]
Pension plans of FTSE 100 companies had a net surplus as of mid-July—the first time in five years—but that surplus may not last for long, according to Lane Clark & Peacock(LCP). The actuary and consulting firm’s 14th annual report, Accounting for Pensions, finds that the surplus may not survive once companies reflect the latest mortality […]
Invesco has launched a new institutional portable alpha strategy that combines traditional international equity index exposure with its Global Tactical Asset Allocation(GTAA)capability. The Invesco GTAA Alpha Overlay – International Equity strategy, initially funded with US$500 million in December 2006, is designed to outperform the MSCI EAFE Index with a low correlation to traditional markets. “This […]
The Office of the Superintendent of Financial Institutions(OSFI)has appointed Bob Hanna as the assistant superintendent, regulation sector. He has been acting in the role since last October when he replaced Julie Dickson, who had been appointed acting superintendent at that time. She was appointed superintendent last month. In this role, he is responsible for capital […]
Cerberus Capital Management and Daimler have agreed to provide additional protection to Chrysler’s pension plans, says the Pension Benefit Guaranty Corporation(PBGC). Last spring the PBGC initiated discussions with Daimler and the private equity firm that led to their agreement. The pension plans will receive an infusion of US$200 million in extra contributions, and Daimler will […]
Great-West Lifeco has completed its acquisition of Putnam Investments from March and McLennan Companies. “We are very excited to join Great-West Lifeco and the Power Financial group of companies, says Putnam’s president and CEO, Charles E. Halderman, Jr. The deal, which was announced in February, is worth about US$3.9 billion. “This acquisition allows Lifeco to […]