derisking – Benefits Canada.com

Expert panel: How interest rates impact DB pension plans

bwolfe — Thu, 07 Dec 2023 14:00:47 +0000

Interest rate levels are critically important to the financial health of defined benefit pension plans. Many DB plans are in their best financial positions in decades, largely due to the dramatic rise in interest rates over the past few years, but decreases in interest rates could pose a major risk for many plans. Changes in […]

The post Expert panel: How interest rates impact DB pension plans appeared first on Benefits Canada.com.

Survey finds 77% of U.S. institutional investors worried about inflation and interest rates in 2024

bmcgovern — Thu, 16 Nov 2023 16:00:02 +0000

A majority (77 per cent) of U.S.-based institutional investors expect interest rates and inflation to remain elevated in 2024, causing problems for risk assessments over the next year, according to a new survey by CoreData. The survey, which polled 100 U.S. institutional investors, found the number of investors concerned about the role of inflation over […]

The post Survey finds 77% of U.S. institutional investors worried about inflation and interest rates in 2024 appeared first on Benefits Canada.com.

Majority of U.S. DB pension plan sponsors expect to divest liabilities over next 4 years: survey

lbailey — Wed, 04 Oct 2023 19:00:18 +0000

Nine in 10 (89 per cent) U.S. defined benefit pension plan sponsors say they’re expecting to completely divest their plan liabilities in roughly four years, according to a new survey by MetLife Inc. The survey, which polled 250 DB plan sponsors, found nearly all (94 per cent) said the financial impacts of volatility and related risks […]

The post Majority of U.S. DB pension plan sponsors expect to divest liabilities over next 4 years: survey appeared first on Benefits Canada.com.

Report finds Canadian pension risk transfer market saw $7.8BN in transferred liabilities in 2022

bmcgovern — Thu, 10 Aug 2023 15:00:30 +0000

Canada’s pension de-risking market saw a record-breaking year in 2022, with $7.8 billion in transferred liabilities and 155 transactions, according to a new report by Eckler Ltd. Mary Kate Archibald, pension principal at the consultancy, says the increase in the total sum for the year wasn’t a surprise due to the interest rate environment. To […]

The post Report finds Canadian pension risk transfer market saw $7.8BN in transferred liabilities in 2022 appeared first on Benefits Canada.com.

Increased protection limits for annuities encouraging DB pension plan sponsors to de-risk: expert

Sadie Janes — Thu, 22 Jun 2023 13:00:42 +0000

An increase in the protection limit for defined benefit pension plan members’ assets invested in annuities is making it easier for plan sponsors to de-risk, says Mary Kate Archibald, a principal at Eckler Ltd. Assuris, the not-for-profit organization that protects a portion of retirement benefits from annuities in the event of an insurer’s insolvency, now covers up to $5,000 […]

The post Increased protection limits for annuities encouraging DB pension plan sponsors to de-risk: expert appeared first on Benefits Canada.com.

81% of institutional investors anticipate de-risking over next two years: survey

Gideon Scanlon — Tue, 20 Jun 2023 16:30:56 +0000

Institutional investors expect market volatility, high inflation and rising interest rates to spur portfolio de-risking policies over the next two years, according to a new survey by Aeon Investments. The survey, which polled pension plan sponsors, insurers and asset managers with about US$545 in combined assets under management, found 81 per cent said they expect […]

The post 81% of institutional investors anticipate de-risking over next two years: survey appeared first on Benefits Canada.com.

Expert panel: How DB pension plan sponsors can use surplus

bwolfe — Tue, 16 May 2023 13:00:02 +0000

In 2022, the typical defined benefit pension plan achieved an investment return of roughly negative 12 per cent. However, due to dramatic increases in bond yields and a subsequent decrease in pension liabilities, many pension plans ended 2022 with the same — or better — solvency funded level that they had at the beginning of […]

The post Expert panel: How DB pension plan sponsors can use surplus appeared first on Benefits Canada.com.

Canadian DB pension plan assets rise 1.9% in April: report

Gideon Scanlon — Thu, 11 May 2023 16:00:11 +0000

A typical Canadian defined benefit pension plan’s funded position improved on a solvency basis and decreased on an accounting basis in April as a result of the strong performance of domestic equities and decreases in bond yields, according to a new report by Telus Health. During the month, the solvency of the typical Canadian DB […]

The post Canadian DB pension plan assets rise 1.9% in April: report appeared first on Benefits Canada.com.

Alcoa entering $315 million annuity transfer for Canadian DB pensions

bwolfe — Thu, 20 Apr 2023 13:00:08 +0000

Alcoa Corp. is de-risking roughly $315 million (US$235 million) in Canadian defined benefit pension obligations and assets with an annuity transfer. The group annuity contracts will be executed by Industrial Alliance Insurance and Financial Services Inc., which will assume payments for roughly 500 participants in September, according to a press release. Read: Alcoa entering $1BN […]

The post Alcoa entering $315 million annuity transfer for Canadian DB pensions appeared first on Benefits Canada.com.

Median solvency ratio of Canadian DB pensions rose to 116% in Q1 2023: report

Jennifer Paterson — Tue, 04 Apr 2023 13:00:10 +0000

The median solvency ratio of Canadian defined benefit pension plans rose during the first quarter of 2023, from 113 per cent at the beginning of the year to 116 per cent at the end of March, according to Mercer’s latest pension health pulse. The measure, which tracks the median solvency ratio of the DB plans […]

The post Median solvency ratio of Canadian DB pensions rose to 116% in Q1 2023: report appeared first on Benefits Canada.com.