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Copyright_Andrii Yalanskyi_123RF

Purpose Investments Inc. is introducing a new longevity pension fund, which invests 50 per cent in equities and 50 per cent in fixed income. It can be incorporated into a defined contribution plan to provide plan members with an in-plan decumulation option, says Pat Leo, vice-president of retirement solutions at Purpose Investments, noting investors can redeem […]

Two experts weigh in on the merits and drawbacks of taking the traditional annuities route versus opting for the newer do-it-yourself option. Marco Dickner, retirement risk management leader for Willis Towers Watson in Canada Although annuity purchases have become an important pension risk management option over the last decade, a countertrend is emerging for plan […]

The recent announcement that General Motors of Canada Co. purchased $1.8 billion of annuities for its salaried pension plan is creating a lot of excitement. GM Canada joins a growing list of plan sponsors who’ve purchased sizeable annuities in the last few years: Stelco Inc. ($885 million), Alcoa Corp. ($750 million), Rio Tinto Group ($560 […]

General Motors of Canada Co. is transferring the longevity risk for $1.8 billion in pension plan liabilities through a group annuity buyout. Jennifer Wright, director of communications at GM Canada, said in a statement that the automaker has been taking steps to reduce risk and strengthen its retirement plans with a view to protecting the […]

  • By: Staff
  • April 8, 2021 April 25, 2021
  • 09:00

Much has been written about how 2020 was unprecedented, challenging and exhausting — take your pick of adjectives. It was also a white-knuckle ride for many Canadian defined benefit plan sponsors as they watched the funded status of their pension plans plummet sharply and then rebound. Most plans’ funded statuses are now at, or even […]

Copyright_Andrii Dragan_123RF

The funding status and confidence of Canadian defined benefit pension plans declined in 2020 amid the coronavirus pandemic and a low interest-rate environment, according to a new survey from RBC Investor & Treasury Services. It found among 122 respondents, 50 per cent reported their plans were fully funded on a going-concern basis, down significantly from […]

  • By: Staff
  • March 5, 2021 March 5, 2021
  • 09:00
ACPM calling on feds to streamline pension overpayment recovery

The Canadian Life and Health Insurance Association is calling on the federal government to provide Canadians with access to more-secure retirement income. In its submission to the 2021 federal budget, the CLHIA recommended that Canadians in and approaching retirement have access to flexible annuity options within registered pensions, registered retirement savings plans, registered retirement income […]

  • By: Staff
  • March 1, 2021 March 1, 2021
  • 15:00

The Pension Investment Association of Canada is calling on the federal government to reform pension solvency rules while supporting legislation to introduce solvency reserve accounts and variable-payment life annuities. In response to a federal consultation paper, the PIAC said while it supports temporary relief measures amid the current economic climate, it cautioned against an approval […]

  • By: Staff
  • January 22, 2021 April 14, 2021
  • 09:00
DB pensions staring down paltry bond returns in 2021

Central banks slowing their quantitative easing policies and economic improvements off the back of wide-scale vaccination efforts should both provide bond yields with a modest boost in 2021. But that won’t give defined benefit pension plan sponsors much relief. “You hear the phrase ‘low for long’ and I would agree we’re in an extended period […]

Corby, Hiram Walker entering $176M group annuity buy-in

Corby Spirit and Wine Ltd. and Hiram Walker & Sons Ltd. are de-risking with a $176-million group annuity buy-in amidst volatile markets caused by the coronavirus pandemic. The deal covers 750 retirees and beneficiaries and there will be no change for plan members, who will continue to be paid from the plan as before the […]

  • By: Staff
  • December 7, 2020 April 28, 2021
  • 15:00