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Higher long-term bond yields driven by rising interest rates are lowering the cost of annuity purchases for defined benefit pension plans, says Mary Kate Archibald, a principal at Eckler Ltd. Since January, the cost of an annuity purchase has decreased by between 10 and 15 per cent, as long-term bond yields increased from 1.7 to […]

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Stelco Inc. is de-risking one of its defined benefit pension plans with a $1.3 billion annuity buy-in. The deal, which covers more than 7,000 United Steelworkers members and beneficiaries employed at the company’s Hamilton, Ont.-based plant, was completed in May with Brookfield Annuity Co. and Sun Life Financial Inc. Read: Stelco workers, retirees learn fate […]

  • By: Staff
  • June 20, 2022 June 23, 2022
  • 09:00

The economic impact of the pandemic has been unevenly distributed across various industries, with travel and transportation among the hardest-hit sectors. However, while travel restrictions and subsequent employee layoffs in these industries made headlines throughout 2020 and 2021, the pension plans provided by these employers have largely weathered any economic fallout. The impact on air […]

Editorial: Looking back — and ahead — in an unprecedented year

This month marks the two-year anniversary of the World Health Organization declaring the coronavirus a global pandemic. In some ways, we’ve come a long way since then, but in others, we’re hovering close to where it all started. One thing is for sure: the pandemic continues to create a through line in Benefits Canada’s content […]

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The strength of equities was among the factors pushing the transaction volume of Canada’s group annuities market to a record high in 2021, according to experts. According to a recent report by LifeWorks Inc., the total volume of group annuities sold in Canada reached $7.5 billion in 2021, up 70 per cent from the previous […]

Nearly two years after the declaration of the global coronavirus pandemic and its subsequent impact on the worldwide economy, institutional investors are looking to the future with cautious optimism. Amid a recovering economy and rising inflation, pension plan sponsors are taking a long-term investment view and staying the course in the year ahead, while incorporating […]

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The average solvency ratio of Canadian defined benefit pension plans in Mercer’s database grew by seven per cent in 2021, according to a new report by the consultancy. The report, which looked at the overall performance of more than 500 Canadian DB plans in 2021, found, at the end of the year, the plans’ average […]

With interest rates trending downward over several decades, liability-driven investing has proven to be a successful strategy for the Canadian Broadcasting Corp. Pension Plan. The maturity of the plan — which currently sits at $8 billion and has an active membership of 38 per cent — drove many of the decisions around adopting the LDI […]

  • By: Blake Wolfe
  • December 21, 2021 December 17, 2021
  • 07:50

With October inflation hitting an 18-year high, inflation risk is back on the radar of plan sponsors providing inflation-linked defined benefit pensions. In the past, it’s been challenging to hedge inflation risk. Fortunately, more efficient solutions have emerged over the last several years. What is inflation risk? For a plan that provides inflation-linked benefits, inflation […]

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The funding status and confidence of Canadian defined benefit pension plans declined in 2020 amid the coronavirus pandemic and a low interest-rate environment, according to a new survey from RBC Investor & Treasury Services. It found among 122 respondents, 50 per cent reported their plans were fully funded on a going-concern basis, down significantly from […]

  • By: Staff
  • March 5, 2021 March 5, 2021
  • 09:00