I learned a few helpful lessons about planning procurements while taking a project management course. For instance, I learned that it’s not unusual for an organization to look to the marketplace for major outsourcing needs, especially when it doesn’t have the competency to deliver certain functions internally. A textbook case springs to mind: when The […]
A former worker at the NewPage Port Hawkesbury paper mill in Cape Breton says about 250 people have been hit with a $5- million bill because of a mistake made in the calculation of their pensions.
Canadian pension plan sponsors are increasingly focused on finding new ways to mitigate the employer risk inherent in DB plans, while also being mindful that many Canadians are not comfortable assuming the level of risk and responsibility that DC plans call for. Target benefit plans (TBPs)—which fix contributions and retirement benefits according to a predetermined formula but allow benefits to be adjusted up or down as future conditions affect plan funding—are emerging as a potential fix to this challenge.
Originally from our sister publication, Investmentreview.com. Interest rate risk and liability driven investment (LDI) have made headlines in the last few years. There is even talk now of versions 2.0 or 3.0 of LDI strategies. Implementation of such strategies has certainly been delayed in the current low-interest rate environment. However, it is believable that, at […]
How to manage the risks of de-risking.
For generations, the concept of retirement centred around a one-time event: you worked to age 65, then your employer sent you off with a gold watch and your DB pension. But just as DB pension plans have begun to fall out of favour in recent years, so, too, has the concept of retirement changed.
The only news around pooled registered pension plans (PRPPs) today seems to be coming from the federal Department of Finance, Ted Menzies, Minister of State (Finance)in particular, who has been stewarding the PRPP initiative.
In Benefits Canada’s 2011 Top 50 DC Plans Report, 46 plans had an increase in assets; this year was not as strong, with only 32 plans with an increase. But despite the drop, the DC space is preparing for an even bigger change as Canada’s retirement landscape moves through a period of reforms. As the population lives longer and the baby boomers begin to retire, Ottawa is reacting to these demographic realities with initiatives for Canadians to work longer and save more for retirement.
Many Canadian employers that weathered the economic downturn have surfaced with a more cautious attitude. They are often more cost-conscious and risk-averse.
Drug benefits are the most significant cost component in most employer-sponsored health benefits plans. Drug costs range between 40% and 70% of an organization’s total health benefits costs, and they are set to rise.