The Pension Benefit Guaranty Corporation’s deficit fell to US$18.1 billion in fiscal 2006, down from $22.8 billion last year. “The PBGC’s financial condition appears to have stabilized for the time being,” says interim director Vince Snowbarger. “Our current assets can cover pension payments coming due for a number of years into the future, and our […]
Pension underfunding has become quite material for some Canadian firms and is having an influence on debt ratings, according to a report by Moody’s. “While on a stand-alone basis an underfunded pension plan will not drive the rating process, it does raise a red flag as to future funding requirements and their potential impact on […]
AGF has signed an agreement to acquire about 80% of London, Ontario-based Highstreet Partners Limited, which manages $4.8 billion in assets, for an undisclosed amount. The current management team at Highstreet—whose clients include pension plans and corporate investors—will continue to own approximately 20% of the firm. Upon completion of the deal, AGF’s private investment group […]
Canada’s generic drugmakers are in Federal Court today, challenging recent changes that protect brand-name drugs from competition. Last month, Ottawa gave new and innovative drugs a guaranteed minimum period of market exclusivity of eight years, up from five years. “Canada’s Parliament approved legislation allowing the government to make regulations necessary to comply with Canada’s international […]
About 400 unionized employees at Cameco’s McArthur River and Key Lake uranium operations have accepted a contract settlement offer from the company. They voted in favour of a new four-year contract that provides a 21.5% wage increase over the period, further wage increases for journeypersons and enhanced benefits. “This contract rewards our workers and their […]
Despite growing interest in liability driven investing among plan sponsors worldwide, there is still confusion about what LDI actually entails, how associated strategies should be implemented and how to determine its true value proposition to plan sponsors. “The term LDI means different things to different plan sponsors. To some of the 140 plan sponsors we […]
The Caisse de dépôt et placement du Québec and AXA Private Equity have purchased a 55% interest in Keolis, an operator of bus and rail passenger systems based in France, from private equity firm 3i Group. Financial terms of the deal were not disclosed. SNCF, France’s state-owned railway company, owns the other 45%. The Caisse […]
The California Public Employees’ Retirement System(CalPERS)has approved US$500 million for investments directly linked to prices of energy, metals, and agricultural products, and in companies that produce and distribute such natural resource commodities. “Our goal is to further diversify our assets and take advantage of long-term market opportunities for positive returns in the resources sector,” says […]
The Saskatchewan government will introduce legislation next week to set automatic increase in pensions for about 8,000 former civil servants. They will be set at 70% of the rate of inflation, says Finance Minister Andrew Thomson. Former Crown corporation and government employees say they’ve received inconsistent ad hoc increases in their pensions under old defined […]
The Nova Scotia Government and General Employees Union(NSGEU)has released details of a pension agreement negotiated last month by five unions and the Nova Scotia Association of Health Organizations. The employers are committed to contribute an additional 1.4% of payroll to the plan. “Any further cost increases will be equally shared by employers and plan members, […]