It’s been 40 years since Ted Benna, then a 36-year-old U.S.-based benefits consultant, noticed a new Internal Revenue Service section that had potential implications for cash-deferred savings plans. The section, 401(k), meant that employees in these plans would have to leave their money in them until just shy of their 60th birthday if they wanted to […]
While defined contribution plan design features such as auto-enrolment and auto-escalation aim to combat plan members’ poor behavioural tendencies, they could be leading to certain unintended consequences, according to a new report by BlackRock Inc. For example, if a plan is using both auto-enrolment and auto-escalation tools, there’s a chance that more members could opt out of additional savings, unless the […]
With many demands on employees’ money, could helping them build an emergency fund alongside their retirement savings make them more financially secure in the long run? Last week, Britain’s National Employment Savings Trust Insight began piloting its new sidecar savings program, which aims to optimize pension savings while helping workers maintain a reasonable amount of liquid savings […]
In my formative school years, it was mandatory for all students to learn cooking, carpentry and typing, among other non-academic pursuits. While I’m certainly grateful to have those life skills, as I get older I wonder why we weren’t taught to invest in the stock market, save for retirement or do our taxes. Generationally, I […]
With just about a month to go until the federal government’s long-awaited Canada Pension Plan enhancements kick in on Jan. 1, 2019, Scott Perkin is relaxed about the prospect. Although the changes have been billed as one of the biggest shakeups to the CPP since its introduction in the mid-1960s, Perkin, the director of pension […]
Currently in their 50s, 60s and 70s, baby boomers cover a wide age range — and their workplace pension plans are equally diverse. So determining what retirement looks like for this generation and helping them prepare is a significant challenge for employers. A good starting point is examining the pension world in which boomers currently […]
After consulting with more than 500 advisors, the Canadian Life and Health Insurance Association is making a number of changes to its G19 guideline pertaining to compensation disclosure in group benefits and group retirement services. The proposed guideline, which was introduced nearly a year ago, would require insurers to disclose to plan sponsors the compensation paid to intermediaries for […]
The first two parts of this series explored the first 10 principles of the Canadian Association of Pension Supervisory Authorities’ guidelines on pension governance. As a principles-based framework, the guidelines lay out what to strive for, leaving the how up to plan administrators. The final instalment in this series looks at the 11th principle, which recommends that […]
The Ontario government is moving forward with legislation around variable benefits from defined contribution plans, facilitating mergers into jointly sponsored pension plans and enabling the electronic designation of beneficiaries in pension plans. In its 2018 economic outlook and fiscal review, released on Thursday, the province said it will move forward with the change, which was […]
It’s a constant challenge for employers to ensure their plan members understand and appreciate the pension and benefits programs available to them. It isn’t easy, but employers stand a better chance of success when the information is meaningful and relevant. The marketing and retail industries have been doing it for ages, to the point where personalization isn’t […]