When two U.S. banks failed this month, among the investors who lost millions were U.S. public sector pension funds responsible for ensuring the retirements of teachers, firefighters and other government workers. Since the pension funds are diversified investors whose holdings in Silicon Valley Bank and Signature Bank were small portions of their portfolios, experts aren’t […]
The aggregate funded percentage of U.S. multi-employer pension plans dropped to 79 per cent in 2022, from 91 per cent in 2021, according to a new report by consulting firm Milliman Inc. It found the decrease was largely the result of significant investment losses during 2022, despite the first wave of special financial assistance funding […]
Defined benefit pension plan sponsors using overlay strategies will gain more flexibility amid rising inflation now that the Office of the Superintendent of Financial Institutions has released guidance allowing these plan sponsors to disregard the overlay when measuring going-concern liabilities, says James Koo, a partner in Aon’s wealth solutions division. In May 2022, the OSFI raised […]
The Pension and Investment Association of Canada is calling on the federal government to establish a going-concern plus regime as a long-term minimum funding requirement for federally regulated defined benefit pension plans. In its pre-budget submission to Finance Canada, the PIAC said it believes the Canadian government should set a uniform funding requirement for all provinces […]
The average funding ratio for U.S. public pension plans increased to 77.8 per cent in 2022 with the majority (68 per cent) of pensions’ revenue coming from investment returns, according to a new survey by the National Conference on Public Employee Retirement Systems. The 12th annual public retirement systems study received responses from 195 state and […]
British Columbia’s amended definition of provision for adverse deviation will provide additional flexibility to the province’s target-benefit pension plans, according to experts. The changes to the PfAD’s definition lowers the minimum funding requirement to 7.5 per cent and allows a supplementary percentage identified by the target-benefit plan administrator or board as appropriate to achieve the […]
The Canadian Federation of Pensioners is taking issue with some of the Alberta government’s proposed legislative and policy updates for private sector pension laws, including a focus on transferring pension risk from plan sponsors to plan members. In its response to the provincial regulator’s consultation draft, the CFP said transferring this risk would be a significant […]
British Columbia is amending the definition of provision for adverse deviation for pension plans in the province with a target-benefit provision. The changes to PfAD’s definition, which will come into effect on Dec. 31, 2022, reflects recommendations from the B.C. Financial Services Authority to the Ministry of Finance. The amendments will lower the minimum funding […]
The Association of Canadian Pension Management is taking aim at the Alberta government’s funding rules for private sector defined benefit pension plans. In its response to consultation draft of potential legislative and policy updates for private sector pension laws, the ACPM wrote that the province’s existing funding requirements fail to appropriately balance benefit security with […]
The Pension Investment Association of Canada is providing feedback on the Alberta government’s consultation draft of potential legislative and policy updates for private sector pension laws. While the PIAC doesn’t have specific views on how to calculate the provision for adverse deviation, it’s encouraged Alberta is considering a harmonized approach, wrote Sean Hewitt, chair of […]