Within Canada and around the world, the conversion of DB plans to DC plans has been accelerating as plan sponsors look to reduce their pension risk.
The debate between the provinces and the feds about healthcare funding rages on. The question of who owns what remains at the core of the debate, but one undeniable truth underlies the discussion: We—as Canadians—cannot afford our current healthcare funding commitments.
Speaking at the annual Mercer Pension Outlook and Fearless Forecast on Tuesday, Malcolm Hamilton commented that the 1990s represented “the last happy time for pension plans in Canada,” because real interest rates stayed above 4% for the decade.
With global economic issues, the ongoing European sovereign debt crisis and pension plan funding levels still a concern, who can blame investors for being worried?
With consultants and their pension clients back at their desks in January, it’s a good time to reflect on the past year, review what went right and wrong, and challenge one another on what can be improved.
Increased longevity poses a real risk to DB plans. Mortality improvement continues to trend upward, and this is particularly pronounced at older retirement ages.
Canadian pension plans should see a better year head, reports Mercer. According to the consulting firm’s most recent Fearless Forecast survey, investment managers anticipate that 2012 will bring modest economic growth, but solid equity returns.
A further drop in federal bond yields halted improvements in the solvency financial positions of most Canadian pension plans through Q4, despite an October rebound in stock markets, according to the Mercer Pension Health Index.
Most North American workers did not use all of their available vacation time this year, according to a survey by consulting firm Right Management.
pointed out a cascade effect: one insurer published its health trend factor, and, subsequently, several other insurers published the same trend number.