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Funded status for individual companies in the S&P/TSX composite index continued to improve in 2007. The median level increased to 93% at year-end, up from 88% at the end of 2006, according to Mercer’s annual review.

In July 2008, Mercer finished a study of retirement programs of 125 companies in the S&P/TSX composite index that sponsor defined benefit plans for their retirees. The total reported benefit obligations for the 125 companies were $186 billion, and total reported assets are $166 billion.

According to Paul Forestell, leader, Canadian retirement professional group, with Mercer, for the last few years, funded ratios have improved as asset returns have outpaced liability returns.

Forestell says funded status has improved in recent years, resulting in the reduction in legacy costs for 2007 and 2008. “But the trend may reverse for 2009 if market conditions continue to deteriorate this year,” he says.

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Reject OMERS’s Offer: Teranet

Teranet Income Fund is telling investors not to tender their shares yet to a $1.7 billion hostile bid from the Ontario Municipal Employees Retirement System.

Teranet chief executive Aris Kaplanis says that a sale process is now underway and it’s drawing a number of interested parties. “We have received considerable interest so far from potential bidders who have signed confidentiality and standstill agreements in order to obtain internal information about Terenet.”

The first and only potential bidder to confirm its interest is the Hospitals of Ontario Pension Plan, the income fund’s largest unit holder.

Other rumoured interested parties include the Ontario Teachers’ Pension Plan and the Public Sector Pension Investment Board.

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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