Longer living Canadians should have the option of pure longevity insurance and the government should facilitate Canadian insurers’ ability to offer it, according to a new report from the C.D. Howe Institute. As baby boomers are hurtling towards retirement, and many have been saving in capital accumulation plans, government policies should focus on how to effectively draw down those […]
The federal government has agreed in principle to pay $100 million to settle a four-year lawsuit with veterans who say they were discriminated against when the government deducted their disability pensions from the income-replacement benefits they received from Veterans Affairs Canada. The veterans initially filed the lawsuit in 2014, saying the government violated the section of […]
While the Canadian Life and Health Insurance Association generally supports the Canadian Association of Pension Supervisory Authorities’ proposed guideline on defined contribution pension plans, certain areas require further clarification. “We recognize that some service providers may require substantial lead time to enhance administrative systems to incorporate functionality, such as capturing and reporting indirect fees, that may not currently exist,” […]
Canada rose two spots to No. 9 among 43 countries in Natixis Investment Managers’ 2018 global retirement index. The modest rise in Canada’s ranking is attributed to improving economic conditions and environmental factors, according to the report, which also points to several factors — low interest rates, growing levels of public debt, aging populations and […]
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 federal government’s proposed framework for unclaimed pension balances is fundamentally flawed, according to the Canadian Life and Health Insurance Association. In a letter to the department of finance, Ronald Sanderson, director of policyholder taxation and pensions at the CLHIA, said transferring unclaimed pension balances to a designated entity should be optional rather than mandatory. […]
The Pension Investment Association of Canada has submitted its comments on the federal government’s unclaimed pension balances framework, noting the solution to the problem is the establishment of public sector agencies with a mandate to receive the balances. The letter noted unclaimed balances are a major and growing problem for federally-regulated pension plans. While there has […]
While retirement income security is top of mind for many Canadians, British Columbia’s public sector pension plans are noteworthy models that can be emulated by sponsors seeking plan design solutions, particularly when it comes to governance. Some other Canadian jurisdictions have introduced, or are in the process of developing, pension governance models similar to British Columbia, but […]
Even as regulators move to expand decumulation options for Canadians in defined contribution pension plans, the degree to which employers will actually adopt the solutions available, including variable benefits, remains an open question. Various factors fuel the conundrum, but exposure to liability and litigation risk loom as perhaps the most daunting obstacles. Proponents of safe […]
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 […]