Is it time to delete the PBGF?
Sponsors of DB pension plans with Ontario members will see their assessments under the Pension Benefits Guarantee Fund (PBGF) rise dramatically.
- January 17, 2012 September 13, 2019
- 09:36
Sponsors of DB pension plans with Ontario members will see their assessments under the Pension Benefits Guarantee Fund (PBGF) rise dramatically.
The last actuarial report on the Canada Pension Plan (CPP) estimated that 38% of Canadians in 2010 started receiving their CPP at age 60. Another 38% or so started their pension at 65. The remaining 24% started their CPP at other ages, mainly between 61 and 64. To someone new to Canada, the “normal” retirement age would not be at all obvious. Yet ask any Canadian and he or she will tell you that normal retirement means age 65.
Everyone knows why organizations around the world have been closing down their DB pension plans in recent years: in a Sophie’s Choice of sorts, they have opted to reduce risk on behalf of shareholders rather than absorb risk on behalf of employees. A 2003 Morneau Shepell survey confirmed this. The question is whether or not there is a more tangible way to express that risk.
Air Canada and the union representing its flight attendants recently agreed to a new hybrid pension plan for new hires. It consists of a slimmed down DB tier, supplemented by a new DC tier. Some observers think this announcement signals a change in direction for pension plans, but that is unlikely to be the case. […]
A spate of papers has been released in recent months issuing dire predictions for Canada’s healthcare system. As a percentage of GDP, our system is already one of the costliest systems in the world and, according the C.D.Howe, the cost will climb much higher in the next 20 years. And I have no reason to […]
Pooled registered pension plans (PRPPs) are coming, and many will say not a moment too soon given that only one in three private sector worker is currently participating in a registered pension plan or group RRSP. The hope is that PRPPs will dramatically improve pension coverage thus relieving public pressure to expand the Canada/Quebec Pension […]
After nearly five years of expert panels, white papers and public consultations there is a sense that the current wave of pension reform is winding down. And, most of us would say we don’t have much to show for all that effort. An expanded Canada Pension Plan (CPP) was rejected and the changes brought about […]
The C.D. Howe Pension Papers Advisory Board just published its latest paper, The Piggy Bank Index: Matching Canadians’ Savings Rates to Their Dreams. The paper, which was co-authored by David Dodge, warns that Canadians need to save 10% to 21% of pay for 35 years if they “wish to provide for adequate and assured retirement […]
On the eve of the federal-provincial finance ministers meeting in Whitehorse, a curious disconnect is emerging in Canada. A chorus of prominent voices has been lamenting the dismal condition of Canada’s “ailing” pension system and exhorting our politicians to act. The Canadian Institute of Actuaries (CIA) published a paper in October 2009 that starts out, […]
© Copyright 2006 Rogers Publishing Ltd. The following article first appeared in the September 2006 edition of BENEFITS CANADA magazine. Pension Rebuild Current defined benefit and defined contribution models are costly, volatile and may not reflect the retirement needs of today’s employees. How about combining some of the old with some of the new? […]