A new retirement plan design could allow more public employees in the U.S. to accrue retirement benefits regardless of their length of service, according to a report by think tank the Reason Foundation. The plan, which blends elements of defined contribution and defined benefit pension plans, focuses on providing employees with the target retirement income […]
Nearly two-thirds (62 per cent) of U.S. women say they expect to retire later than originally planned or not at all due to rising inflation, a significant increase from 25 per cent in 2021, according to a new survey by Edelman Data and Intelligence on behalf of Nationwide Mutual Insurance Co. The survey, which polled […]
An article on the the latest investments by Canadian institutional investment organizations was the most-read story on BenefitsCanada.com over the last week. Here are the five most popular news stories of the week: 1. Ontario Teachers’ backing auto insurance merger, pension plans leap on new BMO equity 2. 75% of employers expecting hiring challenges in 2023: survey 3. Expert […]
For some Canadians, the term pension may still conjure images of a secure stash of money guaranteed to ensure a comfortable lifestyle in retirement. I should know — until joining Benefits Canada in 2020, I counted myself among this group. Defined benefit pension plans — the epitome of the image described above — still exist, but […]
With the coronavirus pandemic and rising inflation causing economic uncertainty, capital accumulation plan sponsors are looking for new ways to help their members feel secure and get the most out of their savings plans. Benefits Canada asked CAP sponsors and other industry experts what’s on their wish lists to make these plans more effective and engaging […]
The Association of Canadian Pension Management is calling on the federal government and capital accumulation plan sponsors to support members’ financial wellness by focusing on decumulation. In a new white paper, the ACPM proposed the creation of a “retirement dashboard” that informs retirees of their available sources of retirement income — including government retirement benefits, […]
The Saskatchewan government is introducing amendments to its pension legislation that provide additional flexibility for plan sponsors and introduce new decumulation options for members of defined contribution plans. The bill, which passed first reading in provincial parliament last week, includes provisions for DC plan sponsors to offer advanced life deferred annuities and variable payment lifetime […]
The Canadian Institute of Actuaries is supporting several of the Alberta government’s proposed legislative and policy updates for private sector pension laws, including the move towards a going-concern plus regime for defined benefit plans and the introduction of automatic features in defined contribution plans. In its response to the consultation draft, the CIA cited the benefits […]
Capital accumulation plan sponsors need to focus on providing lifetime retirement income for plan members amid the growth of decumulation solutions such as advanced life deferred annuities and variable payment lifetime annuities, according to a new report by the C.D. Howe Institute. It noted DC plan members currently have three main options to draw down […]
While defined contribution pension plans currently outnumber defined benefit pension plans, this wasn’t always the case, recalls Bita Jenab, a principal at RetirementWorks Services Inc. DC plans began to gain popularity in the mid-1980s, due to a combination of legislative and economic changes, she adds. “This period marks the introduction of pension accounting rules under […]