Plan administrators are welcoming the increased clarity accompanying the amendment of Ontario’s Pension Benefits Act to allow for the electronic designation of beneficiaries and the re-issue of the Canadian Association of Pension Supervisory Authorities’ guideline No. 2, which establishes best practices for electronic communications in the pension industry. “Clarity on the ability to designate beneficiaries electronically […]
I was lucky enough to know my great-grandmother. I remember her living to the age of 94 — “incredible,” my family would say. But not as incredible as my great-grandfather. Though I never knew him, he lived to the age of 101. Growing up in the 1980s, I recall that someone living to age 100 […]
An outsourced chief investment officer provides external expertise that can ease the minds of plan sponsors overwhelmed by pension management decisions. While the services have traditionally been used by defined benefit plans, do they translate to defined contribution plan management? John Jenner, vice-president of finance at Electrozad: Although today’s world is geographically the same size […]
Though more than half of Canadian capital accumulation plan members feel financially prepared for retirement, there’s a distinct difference across generations. Given their proximity to retirement, it’s no surprise baby boomers (69 per cent) are the age cohort most likely to agree they feel prepared, compared to 59 per cent of generation X and 41 […]
While defined benefit plans are traditionally known for their paternalism, defined contribution pensions represent the next generation. Learning from their parents’ years of investment experience, DC plans are catching up, but hurdles still exist in the quest to invest like DB plans. The liquidity question As more DC plan sponsors consider adding illiquid alternatives to […]
A third of employees don’t expect to ever reach full retirement, according to a new survey by Aon. The survey, which polled 1,000 Canadians at all stages of their careers, found more employees are postponing retirement due to financial concerns. The majority of participants said they don’t expect to fully retire all at once, with only 34 per cent […]
When the World Economic Forum met this year in Davos, Switzerland, it chose a very timely topic: the fourth industrial revolution that’s about to be wrought by automation. Like every revolution, it will have winners and losers. Artificial intelligence will massively increase productivity and create jobs that don’t even exist today. But at the same time, it will […]
Looks aren’t a solid basis on which to form a long-term relationship and neither is the surface-level appearance of a target-date fund. “In a perfect world, we would like our members to have a long-term relationship with a target-date fund we’re offering,” said Zaheed Jiwani, a principal at Eckler Ltd., at Benefits Canada‘s 2019 Benefits […]
The Canadian Association of Pension Supervisory Authorities has outlined its priorities for April 2019 to March 2022 in its new strategic plan, which included initiatives like focusing on defined contribution plan decumulation and cyber security. Jason Vary, president at Actuarial Solutions Inc., notes while all the identified priorities were worthwhile, some are more important than […]
While the process has been slow to date, it’s clear the migration to defined contribution pension plans will continue in Canada. Defined benefit assets comprised about 47 per cent of total financial wealth in 2007, compared to assets in DC plans and other group retirement savings accounts, which made up about 38 per cent, said Colin Ripsman, president […]