Defined benefit pension plans have long included formulas for integrating the Canada Pension Plan into their contributions and benefits design. But with CPP contributions set to rise in 2019, the question of integration will be a consideration for the sponsors of defined contribution pension plans as well. CPP integration isn’t a particularly common feature of […]
It’s no secret that passive investments, such as exchange-traded and indexed funds, have become more popular with investors over the past 10 years. Such funds require very little to no intervention by investment managers and, therefore, have much lower management fees than the classic mutual fund structure. Read: Continued growth predicted as ETF industry tops $100 billion […]
Over the past 10 years, assets in pension plans registered in Alberta have reached $54 billion, an increase of 149 per cent, according to a new report published by the province’s pension regulator. The superintendent of pensions’ 2016 report, published last week, looked at the 753 pension plans under its supervision. The total includes 182 defined benefit plans, 451 […]
The Office of the Superintendent of Financial Institutions has laid out its progress on a number of pension responsibilities in its 2016-17 report on plans and priorities, published Friday. One area of progress is pooled retirement pension plans, notes the report. Since OSFI acquired new responsibilities under the PRPP multilateral agreement, which came into effect in June 2016, […]
Unionized employees at a Quebec-based aluminum smelter are rejecting a proposed change that would move them to a two-tiered pension arrangement from a defined benefit plan. The Syndicat des Métallos/United Steelworkers Local 9700 says employees at the Bécancour, Que., smelter “categorically reject a discriminatory, inferior pension plan for the next generation of workers.” The proposed change would keep defined benefit plans […]
The current environment is simply too difficult for Canadians to save adequately for retirement, given increased longevity and the low yields on appropriate investments, according to a new report by the C.D. Howe Institute that suggests raising contribution limits to retirements savings plans to 30 per cent per year. “People are living longer and — […]
Amid controversy over the cost of its two defined benefit plans for members of city council, a Calgary city councillor has voluntarily decided not to participate in them. “After consulting with my partner and family, I have declined the pension and transition allowance offered to me as a city councillor,” Coun. Jeromy Farkas wrote on […]
How can plan sponsors encourage their employees to make better investment decisions? And how can they ensure plan members can retire with adequate income? Those questions were among the many issues explored during Benefits Canada’s Defined Contribution Investment Forum in Toronto. The conference, which took place on Oct. 5 and 6, covered everything from considerations […]
The idea of taxing employee discounts appears to be on hold for now, but the government may reintroduce it at a later date. If it does, the Canada Revenue Agency may want to consider the implications a little more carefully. Employee discounts are already taxable when they’re substantial in nature. If an automobile company employee gets […]
The total number of active members in registered pension plans rose steadily between 2005 and 2015, from 5.7 million to 6.3 million, an increase of 10 per cent, according to new data from the Office of the Superintendent of Financial Institutions. However, the proportion of employees covered by a registered pension plan has declined very […]