Plan member comprehension of investment choices and poor investment returns are by far the greatest challenges faced by Canadian defined contribution (DC) plan sponsors, a new survey reveals. Mercer’s 2009 Global DC survey of 1500 plan sponsors (including 193 Canadian plans) in 33 countries finds 77% of respondents cite a lack of plan member understanding […]
Ontario Finance Minister Dwight Duncan has announced a two-stage pension reform agenda, the first of which will commence in November. Duncan told reporters on Wednesday that the province would introduce legislation next month and again in 2010 with a focus on harmonizing the province’s pension regime with the rest of the country. “We’re trying to […]
As the details of federal finance minister Jim Flaherty’s proposed pension reforms are parsed, experts are weighing in on what it means for plan sponsors and how it affects the future of retirement in Canada. “Our government has listened carefully to Canadians,” said Flaherty in a statement. “We understand the value of secure and sustainable […]
Federal Finance Minister Jim Flaherty unveiled a set of reforms on Tuesday, Oct.27 aimed at shoring up some of the weaknesses in Canada’s pension regime. Arguably the most significant proposal is the raising of the threshold at which plan sponsors can over-fund their pension plans, from 10% to 25% of the fund’s assets. Some plan […]
It’s not easy being a Canadian plan sponsor these days. Volatile equity markets, increasing longevity, and the questionable notion of risk management have conspired to visit misery upon those employers who deem it important to provide their workers with a retirement plan. In an effort to provide guidance to plan sponsors, Benefits Canada held its […]
The number of employers globally that offer employees choice in the benefits that they receive is growing, according to a new survey. Mercer’s poll of more than 1,700 organizations in 47 countries finds that one in four employers now offers choices within their benefits plan. One-third of those that do not offer choices are considering […]
The federal department of finance has released amendments to the Goods and Services Tax/Harmonized Sales Tax (GST/HST) legislation. These amendments should be reviewed by Canadian plan sponsors of registered pension plans funded by means of a trust or certain pension corporations, says a new Mercer Communiqué. The amendments include a proposed rebate system that will […]
The current fee structures featured by many infrastructure funds are flawed and are impeding take up by institutional investors, according to Watson Wyatt. However, with a few changes, such funds may see a sharp rise in investor interest. Watson Wyatt’s Fees in Infrastructure report concludes that the firm favours either low-cost PPP (public-private partnership) strategies […]
The current perception of risk and asset allocation will have undergone a fundamental shift by the time the global economy rights itself, says the CEO of PIMCO. Mohamed El-Erian, who is also PIMCO’s co-chief investment officer and author of the book When Markets Collide: Investment Strategies for the Age of Global Economic Change, told the […]
Canadian organizations are spending a significant amount of time on their retirement programs this year, particularly in the areas of risk management and plan members’ understanding of retirement income adequacy. Hewitt Associates’ Canadian Retirement Trends 2009 survey of 196 organizations suggests that a majority (59%) of plan sponsors of both defined benefit (DB) and defined […]