It’s hard to believe that just recently, people weren’t cutting their own hair or binge-watching Tiger King. At the beginning of the year, defined benefit funding levels were at record highs and many pension plan sponsors were considering reducing their pension risk. Fast forward a few months and the novel coronavirus has turned the world […]
In 2009, when Vincent Morin walked through the doors of Air Canada as the vice-president of asset allocation and strategy for its investment division, he faced a tough situation. The company’s eight defined benefit pension plans, which buy units of a single master trust fund, were facing a $2.6 billion deficit. In the following years, […]
The Pension Investment Association of Canada is calling on provincial governments to allow pension plan sponsors to opt out of making any special payments for a period of six to 12 months or until there’s greater visibility of the end of the fallout from the coronavirus crisis. “We recommend that no conditionality or approval requirements be applied […]
In this time of pandemic, a lot has been shared about the woes of defined benefit pension plans, but members of capital accumulation plans are also feeling the impact, even though few have even noticed. Fortunately, target-date funds and lifecycle portfolios have really helped. But the government and provincial regulators need to help as well. Once […]
From plan members to plan sponsors to providers, everyone in the industry is talking about decumulation. Even governments are getting in on the action. But what will be the effect of the new products? “The options will meet the needs of some employers, but we’re not heading for a revolution just yet,” said Marc-Antoine Morin, […]
The Office of the Superintendent of Financial Institutions is introducing some measures to help federally regulated private defined benefit pension plans get through the difficult times caused by the coronavirus. Particularly, the regulator is temporarily freezing portability transfers and annuity purchases. In both cases, plan sponsors can write to the OSFI to for consent to […]
While the Pension Investment Association of Canada is applauding proposed changes to Manitoba’s Pension Benefits Act that would allow for in-plan solvency reserve accounts for defined benefit pension plans, it’s calling on the province to make further reforms. In a letter to Manitoba’s Finance Minister Scott Fielding, the PIAC said the suggested amendments, which were introduced in November […]
West Fraser Timber Co. Ltd. isn’t annuitizing multiple defined benefit plans to get out of the pension business. In fact, the British Columbia-based integrated wood products company is committed to DB. “We believe we get tremendous value out of our DB plans around recruitment and definitely around retention of our employees,” says Elaine Jensen, the […]
The first major reform to the U.S. retirement system in a decade, the Setting Every Community Up for Retirement Enhancement Act, contains provisions that could be useful guides for Canadian legislators and regulators. Signed into law by President Donald Trump in December, the act, known as SECURE, is primarily aimed at addressing Americans’ difficulty in […]
The Canadian Life and Health Insurance Association is asking the federal government to develop a strategy for access to high-cost drugs and to make flexible annuity options available for a variety of retirement savings vehicles. In its 2020 budget submission to Finance Minister Bill Morneau, the association called for the federal government to work with provincial and territorial governments and […]