The capital market volatility of the past few months has been unsettling for pension plan sponsors and participants alike. Even before Standard & Poor’s downgrading of the U.S. credit rating, indicators pointed to deterioration in the financial position of most DB plans. For one, accounting discount rates for many plans decreased by 50 to 60 […]
The U.S.’s state and local public employee retirement systems fell $726.1 billion, or 22.7% in 2009, from $3.2 trillion in 2008 to $2.5 trillion in 2009, reports the U.S. Census Bureau. This follows a $176.7 billion loss the previous year. The statistics come from the 2009 State and Local Public Employee Retirement Systems Survey, which […]
Canada has held on to its fifth place ranking in a global comparison of pension systems, but significant reform is still needed. According to the 2011 Melbourne Mercer Global Pension Index, many of the world’s retirement systems are under significant stress and even the most advanced pension systems—including Canada’s—require ongoing reform to ensure they’re robust […]
Declining interest rates close out a rough quarter that registered a record growth in the U.S.’s pension funding deficit, according to Milliman Analysis. In the latest results of its Pension Funding Index, comprising 100 of the U.S.’s largest DB plans, the global consulting and actuarial firm revealed these plans experienced a $31 billion investment loss […]
Nova Scotia Premier Darrell Dexter says the province has no plans to review public sector pension plans. Dexter says his government will look at what a New Brunswick government review concludes, but he says the biggest plan in Nova Scotia is in a “balanced position.” That plan is the Public Service Superannuation Plan, which includes […]
The Canadian Federation of Independent Business (CFIB) says governments across Canada should follow New Brunswick’s lead and begin reviewing their public sector pensions. “We’ve been shining a light on the massive cost of public sector pensions for years knowing full well they’re unsustainable,” says Catherine Swift, CFIB president. “New Brunswick’s bold step to dig deep […]
Amid concerns of a global economic slowdown, Canadian pension plans experienced significant losses on both sides of the balance sheet in the third quarter of 2011, according to the Mercer Pension Health Index. The index measures the ratio of assets to liabilities for a model pension plan. It stood at 60% on Sept. 30, down […]
Pension deficits are on the rise among S&P 1500 companies, according to new figures from Mercer. According to the firm, the combined deficits of pensions sponsored by companies in the S&P 1500 increased by $134 billion in September 2011—from an overall deficit of $378 billion as of Aug. 31, 2011, to $512 billion at the […]
A majority of Canadian DB plan members are confident that their company’s pension plan will pay them a sufficient income in retirement, according to a survey released today by RBC Dexia Investor Services and Grant Thornton. According to the survey of 879 employees who are enrolled in their company’s DB plan, 83% trust that when […]
The assets for the U.S.’s 100 largest public sector retirement plans rose 1.3% to US$2.8 trillion in the second quarter of 2011, according to the latest figures from the U.S. Census Bureau. The rise marks the highest level since the second quarter of 2008. Year-to-year, total assets rose 17.6%, or US$414 billion. Holdings of corporate […]