Bank of Canada – Benefits Canada.com https://www.benefitscanada.com Canada's most influential pension and benefits publication for decision-makers Tue, 07 May 2024 13:31:42 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.8 Expert panel: How interest rates impact DB pension plans https://www.benefitscanada.com/expertpanel_/gavin-benjamin/expert-panel-how-interest-rates-impact-db-pension-plans/ Thu, 07 Dec 2023 14:00:47 +0000 https://www.benefitscanada.com/?p=148419 Interest rate levels are critically important to the financial health of defined benefit pension plans. Many DB plans are in their best financial positions in decades, largely due to the dramatic rise in interest rates over the past few years, but decreases in interest rates could pose a major risk for many plans. Changes in […]

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]]> Bank of Canada holds key interest rate at 5%, keeps door open to more rate hikes https://www.benefitscanada.com/canadian-investment-review/cir-news/bank-of-canada-holds-key-interest-rate-at-5-keeps-door-open-to-more-rate-hikes/ Wed, 25 Oct 2023 19:00:09 +0000 https://www.benefitscanada.com/?p=145920 The Bank of Canada held its key interest rate steady at five per cent, but hasn’t ruled out future rate hikes as price pressures remain high. “With clearer signs that monetary policy is moderating spending and relieving price pressures, governing council decided to hold the policy rate at five per cent,” said the Bank of […]

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]]> 2023 Risk Management Conference: New dynamics in interest rates markets creating opportunities, risks for institutional investors https://www.benefitscanada.com/canadian-investment-review/post-event-coverage/2023-risk-management-conference-new-dynamics-in-interest-rates-markets-creating-opportunities-risks-for-institutional-investors/ Wed, 18 Oct 2023 11:58:03 +0000 https://www.benefitscanada.com/?p=144307 Institutional investors’ strategic approach to interest rates must evolve to properly reflect the risks and opportunities in today’s markets, according to Michael Cook, vice-president of client relations and liability-driven investment client portfolio manager at CIBC Asset Management, during a session at the Canadian Investment Review’s 2023 Risk Management Conference. The previous low in interest rates was […]

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]]> Average DB pension plan’s funded position up in June: report https://www.benefitscanada.com/pensions/defined-benefit-pensions/average-db-pension-plans-funded-position-up-in-june-report/ Thu, 20 Jul 2023 16:00:52 +0000 https://www.benefitscanada.com/?p=141010 The funded position of a typical defined benefit pension plan increased on both a solvency and accounting basis during the month of June, according to the latest pension index from Telus Health. In June, the solvency of the average DB plan rose to 103.2 per cent, up from 101.4 per cent during the month of […]

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]]> BoC raises key interest rate to 5%, expects slower return to inflation target https://www.benefitscanada.com/canadian-investment-review/cir-news/boc-raises-key-interest-rate-to-5-expects-slower-return-to-inflation-target/ Thu, 13 Jul 2023 14:30:59 +0000 https://www.benefitscanada.com/?p=140989 The Bank of Canada raised interest rates again on Wednesday and released new projections that suggest it will take longer to get inflation back to two per cent. The central bank hiked its key interest rate by a quarter of a percentage point, bringing it to five per cent. Forecasters were widely anticipating the central […]

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]]> Median solvency ratio of Ontario DB pensions rose to 115% in Q1 2023: report https://www.benefitscanada.com/canadian-investment-review/db-investments/median-solvency-ratio-of-ontario-db-pensions-rose-to-115-in-q1-2023-report/ Mon, 15 May 2023 13:00:39 +0000 https://www.benefitscanada.com/?p=137903 The median solvency ratio of Ontario defined benefit pension plans rose during the first quarter of 2023, from 112 per cent at the beginning of the year to 115 per cent at the end of March, according to the Financial Services Regulatory Authority of Ontario’s latest pension solvency report. During the quarter, pension fund investment returns averaged […]

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]]> How are pension funds and other institutional investors approaching investments in 2023? https://www.benefitscanada.com/archives_/benefits-canada-archive/how-are-pension-funds-and-other-institutional-investors-approaching-investments-in-2023/ Fri, 10 Feb 2023 13:55:45 +0000 https://www.benefitscanada.com/?p=133362 Amid the unprecedented events of the last three years, the Colleges of Applied Arts and Technology pension plan has remained on course with its investment strategies, according to Asif Haque, the plan’s chief investment officer. “We held our focus on the key goal of the CAAT’s investment program. . . . The plan’s diversified asset […]

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]]> High inflation supercharging decumulation challenges https://www.benefitscanada.com/archives_/benefits-canada-archive/high-inflation-supercharging-decumulation-challenges/ Fri, 10 Feb 2023 13:55:25 +0000 https://www.benefitscanada.com/?p=133378 Finance’s toughest problem just got a whole lot trickier, thanks to the quandary of inflation. Legendary economist William F. Sharpe sealed his place in history when he collected the 1990 Nobel Memorial Prize in Economic Sciences for his work on investment decision-making, but in defined contribution pension circles, the emeritus professor at Stanford University is […]

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]]> Withdrawal of real return bonds could financially impact DB pension plans: CIA https://www.benefitscanada.com/canadian-investment-review/db-investments/withdrawal-of-real-return-bonds-could-financially-impact-db-pension-plans-cia/ Thu, 19 Jan 2023 14:00:27 +0000 https://www.benefitscanada.com/?p=132784 The Canadian Institute of Actuaries is urging the federal government to reconsider its cessation of real return bond issuances, citing the potential financial impacts to defined benefit pension plans. “We request not only that the decision to cease issuing real return bonds be reconsidered, but also that the annual issuance of real return bonds be […]

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]]> Report finds Canadian DB pension plan assets declined 3.1% in December https://www.benefitscanada.com/canadian-investment-review/research-markets/canadian-db-pension-plan-assets-declined-3-1-in-december-report/ Thu, 12 Jan 2023 17:30:25 +0000 https://www.benefitscanada.com/?p=132395 The average Canadian defined benefit pension plan lost ground on a solvency and accountancy basis in December, according to LifeWorks Inc.’s latest monthly report. At the end of 2022, the solvency index reached 103.8 per cent, down 3.1 per cent from the end of November. The balance sheet index also fell 2.4 per cent — […]

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