pension risk transfer – Benefits Canada.com

U.S. pension risk transfer sales premium increased 53% in Q4 2023: report

bmcgovern — Fri, 05 Apr 2024 13:00:37 +0000

The total premium of U.S. pension risk transfer sales reached US$12.7 billion in the fourth quarter of 2023, a 53 per cent increase from the same period in 2022, according to a report by LIMRA. It found that pension risk transfer sales totalled $45.8 billion in 2023, down 13 per cent from 2022. There were […]

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Median solvency ratio of Canadian DB pension plans up 2% in Q1 2024: reports

bmcgovern — Thu, 04 Apr 2024 19:00:37 +0000

The median solvency ratio of Canadian defined benefit pension plans increased two per cent in the first quarter of 2024, according to a report by Mercer. The report, which tracks more than 450 DB pension plans, found the median solvency ratio grew to 118 per cent, as at March 29, 2024, from 116 per cent […]

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U.S. pension risk transfer sales increased 39% in Q3 2023: report

lbailey — Mon, 08 Jan 2024 14:00:39 +0000

U.S. pension risk transfer sales increased by 39 per cent during the third quarter of 2023, according to a report by LIMRA. It found single premium buyout sales were US$8.1 billion, 69 per cent lower than this time last year. Year-to-date, buyout sales fell 30 per cent to $28.9 billion compared to 2022. There were […]

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Median solvency ratio of Canadian DB pension plans declines in Q4 2023: reports

lbailey — Fri, 05 Jan 2024 14:00:12 +0000

The median solvency ratio of Canadian defined benefit pension plans declined in the fourth quarter of 2023, according to reports by Mercer and Aon. Mercer’s report, which tracked more than 450 DB pension plans, found the median solvency ratio declined to 116 per cent as at Dec. 31, 2023, from its previous high of 125 […]

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Study finds healthier funding status for DB plans raising interest in LDI strategy reviews

bmcgovern — Tue, 12 Dec 2023 16:00:13 +0000

U.S.-based defined benefit pension plan sponsors are increasingly looking to assess their liability-driven investment strategies as they reach fully funded statuses, according to a new study by Coalition Greenwich and commissioned by Franklin Templeton. The study found nearly three-quarters (73 per cent) of pension plan sponsors reported funding ratios of 100 per cent or higher, […]

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N.S. legislation allowing private employers to transfer pensions into PSSP

Sadie Janes — Thu, 23 Nov 2023 14:00:16 +0000

Nova Scotia-based private employers can now transfer their pension plans into the Public Service Superannuation Plan. The Private Sector Pension Plan Transfer Act, which received royal assent on Nov. 9, provides all employers based in the province with the option of offering or continuing to offer a defined benefit pension plan with a prescribed funding […]

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Majority of U.S. DB pension plan sponsors expect to divest liabilities over next 4 years: survey

lbailey — Wed, 04 Oct 2023 19:00:18 +0000

Nine in 10 (89 per cent) U.S. defined benefit pension plan sponsors say they’re expecting to completely divest their plan liabilities in roughly four years, according to a new survey by MetLife Inc. The survey, which polled 250 DB plan sponsors, found nearly all (94 per cent) said the financial impacts of volatility and related risks […]

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Record levels of pension risk transfers in U.K., U.S. carrying into 2023: report

Jennifer Paterson — Thu, 31 Aug 2023 14:00:07 +0000

Record levels of transactions in the U.K. and U.S. pension risk transfer markets in 2022 are carrying into the first half of 2023, according to a new report by the Legal & General Group. In the U.K., the report found an unprecedented acceleration in demand, driven by more defined benefit pension plans being closer to […]

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Alcoa entering $315 million annuity transfer for Canadian DB pensions

bwolfe — Thu, 20 Apr 2023 13:00:08 +0000

Alcoa Corp. is de-risking roughly $315 million (US$235 million) in Canadian defined benefit pension obligations and assets with an annuity transfer. The group annuity contracts will be executed by Industrial Alliance Insurance and Financial Services Inc., which will assume payments for roughly 500 participants in September, according to a press release. Read: Alcoa entering $1BN […]

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Annuity buyout costs increasing for U.S. DB pension plan sponsors: report

bwolfe — Mon, 03 Apr 2023 13:00:13 +0000

Defined benefit pension plan sponsors in the U.S. are facing increasing costs when de-risking through annuity buyouts, according to a new report by consulting firm Milliman Inc. It found the estimated cost to transfer risk to an insurer increased in February to 99.7 per cent of a plan’s total liabilities, up from 99.3 per cent […]

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