Fee compression is putting pressure on providers that are seeking to be more innovative in launching new target-date funds, prompting managers to consider more customization, according to new research by Cerulli Associates. The fee compression challenge is bolstering certain trends among target-date managers, including blending passive and active strategies, as well as the push towards […]
While target-date funds are intended to be used as a singular option in capital accumulation plans, many defined contribution plan members use them in conjunction with other investments, according to research by Morningstar Inc. The report noted more than 10 million DC participants are potentially in TDFs and other plan investments. “While combining target-date funds with […]
The market value of assets held by Canadian trusteed pension plans hit $1.97 trillion in the first quarter of 2019, an increase of five per cent from the last quarter of 2018, according to new data from Statistics Canada. Year over year, the market value of assets rose 3.6 per cent. The total includes assets […]
As a solution to employee inertia, many plan sponsors with defined contribution arrangements are looking at setting automatic features as their plan’s default option. When the Royal Bank of Canada redesigned its DC plan in 2012, it introduced auto-enrolment for all new plan members following a six-month waiting period. Before the change, employees had a […]
Since Telus Communication Inc.’s journey from defined benefit pension plans to defined contribution began in 1996, it’s come a long way, but it’s far from over. During a session at the Association of Canadian Pension Management’s annual conference on Wednesday, Carol Craig, Telus’s director of benefits and pensions, and Dave Lawson, vice-president of investment management, noted the DC […]
One in three (30 per cent) U.S. defined contribution plan sponsors have adopted a solution to deal with plan members’ need for a lifetime income, according to a survey by Willis Towers Watson. That’s up from 23 per cent in 2016, the last time the organization surveyed plan sponsors on this issue. The survey, which polled 164 large […]
Canadian insurers paid out $98 billion in benefits in 2018, an increase of seven per cent over 2017, according to the Canadian Life and Health Insurance Association’s annual fact book. Similar to previous years, this was led by retirement benefits from annuities ($49 billion), health benefits for prescription drugs and extended health providers like dentists […]
Defined contribution plan sponsors have to stay aware of plan design developments to improve their benefits offerings for their specific workforces, according to a new report by Callan. As workplace demographics shift, it’s important for plan sponsors to make sure their DC plan features are keeping up with those changes to ensure the benefits they’re providing are most effective […]
As the labour dispute between Western Forest Products Inc. and United Steelworkers Local 1-1937 heads into its third month, tensions are running high over health benefits. Employees who are members of the Steelworkers chapter have been on strike since July 1, 2019. The proposed collective agreement in question includes concessions on a number of issues, […]
With the private sector’s move from defined benefit to defined contribution pension plans and rising life expectancies, the issue of retirement decumulation is increasing in importance. Decumulation deals with converting retirement savings into income that must be managed over the rest of the retiree’s lifetime. It can be a challenge for Canadians who don’t have a significant […]