Sears Canada Inc.’s announcement on Tuesday that it will seek a liquidation order from the Ontario Superior Court of Justice appears to vindicate the earlier decision of the company’s employees and retirees to seek a windup of the company’s defined benefit pension plan at the earliest opportunity. “While you might not want to seek a […]
Nova Scotia’s auditor general is sounding the alarm about the financial status of the province’s teachers’ pension plan, calling for action to address its “serious financial condition.” In a report released Wednesday, Michael Pickup said the plan, currently funded at almost 78 per cent, is facing significant difficulties. “It is troubling that while there is a […]
For those who aren’t accountants, it’s likely quite difficult to determine who’s right in the ongoing debate between the Ontario government and the province’s auditor general over how to treat public pension plan surpluses in the annual budget. So what’s the debate actually about? Considering the surpluses in the Ontario Teachers’ and Ontario Public Service […]
Nortel Networks Corp., Stelco Inc., Sears Canada Inc. These are just a few of the many bankruptcy or restructuring cases that have catapulted the financial state of company pension plans into the spotlight. But while the attention generally focuses on protecting the company’s employees and retirees, it’s important to remember that there are a number […]
A Quebec Superior Court decision refusing to give priority to pension contribution deficiencies in the context of a mining company’s restructuring has ramped up the uncertainty around the windup of Sears Canada Inc.’s defined benefit plan. Earlier this month, Justice Stephen Hamilton ruled that the deemed trust that gives priority to pension claims under Newfoundland […]
Nova Scotia is following in the footsteps of a number of other provinces by looking into its funding framework for defined benefit pension plans. Like most jurisdictions in Canada, Nova Scotia requires defined benefit plans to be valued and funded on both a going-concern and a solvency basis. Under the review, the province is considering […]
Canada has edged out Britain as the fifth-largest country by share of pension assets, according to a new report from Willis Towers Watson. On Monday, the firm released its report on the world’s 300 largest pension funds for 2016. The results showed the assets of the largest funds rose by 6.1 per cent in 2016 […]
New draft regulations published in Quebec this summer address policies around annuity purchases for defined benefit pension plans for the first time. Industry stakeholders have been expecting the province’s regulations, which are currently under consultation, since Jan. 1, 2016, when Quebec implemented legislative changes that replaced its solvency regime with enhanced going-concern funding rules and required […]
Public pension plans have received flak over the years, with critics calling for greater transparency around liabilities and fairness for taxpayers. The Canadian Federation of Independent Businesses launched a campaign back in 2011 to raise awareness about public pensions and their cost to Canadians. According to the CFIB, public servants already earn more every year […]
Public pension plans are beneficial to taxpayers, according to a new report that suggests tax revenues created through retiree spending and pension investments may actually exceed what the public pays into them. The report, from a series by the National Conference on Public Employee Retirement Systems in Washington, looks into several arguments used to discredit public pension funds […]