A report from Nova Scotia’s auditor general is once again highlighting the “troubling” state of the Nova Scotia teachers’ pension plan, which is 78.4 per cent funded and has a $1.4 billion deficit. The province is responsible for half of that figure. Auditor general Michael Pickup warned there is no formal plan on how to deal with […]
One of Neiman Marcus Group Ltd.’s debtholder believes the company could be in default based on a transaction involving the Canada Pension Plan Investment Board. Marble Ridge Capital LP, which is invested in some of the group’s debt, namely its 8.75 per cent senior notes and term loans, sent a letter last week expressing serious concern over […]
A court-appointed monitor for the Sears Canada bankruptcy process says it opposes a proposal that would effectively allocate all the failed retailer’s remaining assets to the company’s underfunded pensions. FTI Consulting argued in a Sept. 7 filing to Ontario Superior Court that the pension proposal should be dismissed due to legislation and case law. A petition […]
The Canada Mortgage and Housing Corp. is having déjà vu. After closing its defined benefit plan to new members in 2013 and introducing a defined contribution component, the organization is now reversing course completely, closing its DC plan at the end of 2017 and re-opening its DB plan to all employees on Jan. 1, 2018. […]
As Air Canada seeks approval from the Office of the Superintendent of Financial Institutions to form its own life insurance company, bringing it one step closer to the annuities market, will this move become a trend for large organizations with looming pension payouts? In an email to Benefits Canada, a spokesperson from the airline said the move is […]
In response to its new defined benefit pension funding regime, the Financial Services Commission of Ontario has developed a chart illustrating the rules applicable in five scenarios, based on valuation and filing dates. The new regime, which took effect on May 1, 2018, includes: shortening the amortization period to 10 years from 15 years for funding a […]
The Weyerhaeuser Co. is putting in action a number of steps to reduce its U.S. defined benefit pension liabilities while maintaining the plan’s current funded status. First, the Seattle-based timberland company will offer select plan members the opportunity to take an immediate lump-sum distribution, which will be paid from plan assets during the fourth quarter of […]
While there are nuances, I consider a target-benefit plan to be one that determines benefits to members on a defined benefit basis while setting out employer contributions on a defined contribution basis. To allow for that mix, target-benefit plans permit benefit reductions when contributions fall short. My goal is to share what I consider an […]
With former Sears Canada Inc.’ employees set to see a 30 per cent reduction in their pension benefits beginning Aug. 1, Benefits Canada looks back at the saga. June 2017 — Sears Canada announces it’s seeking protection under the Companies’ Creditors Arrangement Act as it faces a $308.6-million deficit related to its retirement benefit obligations. Read: Sears […]
Sears Canada Inc. retirees, through Koskie Minsky LLP, filed a motion in court on Friday seeking the retailer’s remaining cash to help fund their pension shortfall. While the plan’s deficit sits at $260 million, the company currently holds about $135 million, according to a recent report by FTI Consulting Canada Inc., the court appointed monitor for the retailer’s insolvency. If the […]