A consultation paper by the U.K. government is considering how defined contribution plans could incorporate more illiquid investments. Specifically, the consultation’s proposals include requiring larger DC plans to set out their policy and current practice for illiquid investments and report on it annually. It also proposed requiring smaller DC plans to conduct a triennial assessment […]
When the Canada Pension Plan enhancement took effect on Jan. 1, 2019, did you feel the pinch in your first paycheque of the year? The answer is probably no. In the first stage of enhancement, employee and employer contribution rates will rise from 4.95 per cent each to 5.95 per cent each, for a total […]
While defined contribution plans can currently pay variable benefits to members at retirement in British Columbia, Alberta, Saskatchewan, Manitoba, Quebec and Nova Scotia, the Ontario government is moving forward with legislation to allow the option. But are DC plan sponsors actually interested? Michael Dodd, director of pensions, treasury and shareholder services at the Co-operators Group […]
While the Canadian retirement income system is performing well overall, it still requires some assessment to determine its primary goals and how changing one part of the system may affect the other parts, according to a new report by the Office of the Superintendent of Financial Institutions. “Basically, what we’re trying to say [in the report] […]
The introduction of more flexible annuity options for capital accumulation plans and reform to prescription drug coverage are among the recommendations by the Canadian Life and Health Insurance Association for the 2019 federal budget. In a letter to the Ministry of Finance, the CLHIA highlighted the increasing need for Canadian retirees to convert some or all of […]
The Association of Canadian Pension Management is calling on the federal government to take caution in creating any new significant disincentives “that would push more corporations to abandon their DB plans.” In its response to the government’s consultation on enhancing Canadians’ retirement security, the association said the best protection for workers’ and retirees’ pensions is a strong employer. […]
Saskatchewan will soon be the latest jurisdiction to adopt an enhanced priority for deemed trusts created by its pension benefits legislation. The Pension Benefits Act establishes a deemed trust for amounts contributed by both employers and employees. Bill 151, which amends the province’s Personal Property Security Act, will create a super-priority for these trusts when […]
The Shareholder Association for Education and Research is calling on federal policymakers to adopt measures to protect workers’ retirement savings. In a letter to the federal government, the Vancouver-based, responsible investment organization suggested amending bankruptcy law to provide courts with the power to set aside executive and director bonuses and compensation increases where a company with unfunded […]
The Canadian government is “thinking outside of the box” with its proposal to extend the Bank of Canada’s program on dormant bank accounts to include unclaimed pension plans, says Kathy Bush, interim vice-chair of the national policy committee at the Association for Canadian Pension Management. Last June, the government launched consultations around whether it should tax and reduce interest paid to unclaimed pensions […]
The Pension Investment Association of Canada isn’t supportive of providing a super-priority for unfunded pension liabilities and other post-retirement benefits in an insolvency situation. “While we recognize that the intention of such a change would be to enhance retirement security for plan beneficiaries, we believe that overall impact on the retirement income system would be negative,” […]