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 […]
According to Statistics Canada, there are almost 3,000 registered pension plans in Canada with members in more than one province—hence the need for a national framework to coordinate pension administration in a country with 10 different sets of minimum standards. July 1, 2011 marked the beginning of a new chapter for multi-jurisdictional plans in Ontario […]
The treatment and protection of members’ accrued pensions in an underfunded DB pension plan following the insolvency of the plan sponsor has been the subject of many discussions since the 2008 financial crisis. Consultation papers, private members’ legislation and employee and union advocacy groups have all proposed (albeit unsuccessfully, at least to date) methods of […]
On Feb.10, 2011, Ontario released details on Proposed 2011 Solvency Relief, measures that would provide temporary solvency funding relief for eligible public sector and broader public sector pension plans. Since the introduction of 2009 solvency relief by the Ontario government—which were temporary relief measures applicable to DB plans, the government has been approached by universities […]
In November 2010, Ontario Minister of Finance Dwight Duncan tabled Bill 135 as part of the government’s Economic Outlook and Fiscal Forecast for 2010 and the bill received Royal Assent on Dec. 8, 2010. Bill 135 amends the Pension Benefits Act ( PBA) by changing the pension portability rules effective for members who terminate from […]
During late 2008 and early 2009, the Actuarial Standards Board promulgated several changes to the Standards of Practice for Pension Plans (SPPP) applicable for any pension commuted value (CV) calculation with an effective date after April 1, 2009. However, two elements of the targeted changes were not implemented at that date, primarily to allow plan […]
The actuarial standards applicable to virtually all defined benefit (DB) pension plans in Canada are undergoing two distinct changes in 2011. These updates will affect how actuaries determine the assumptions, apply actuarial methods and prepare their reports for all funding actuarial valuations effective Dec. 31, 2010. Changes to actuarial valuation standards The new Standards of […]
Right on the heels of the Pension Benefits Amendment Act, the Ontario government is moving forward with the next phase of its strategy to enhance the pension system in Ontario. On August 24, the government announced a number of proposed changes to the legislation and/or regulations affecting Ontario-registered pension plans. The changes come from the […]
Canadian federal and provincial finance ministers met in Charlottetown in June 2010 and moved a few steps closer to reaching agreement on the expansion of benefits payable from the Canada Pension Plan (CPP). The objective of CPP enhancements is to provide increased pension coverage for millions of working Canadians, albeit with increased payroll taxes […]
The financial events of 2008 and early 2009 will have a long-lasting effect on the myriad stakeholders of employer-sponsored pension plans. Many plan sponsors are facing significant increases in cash contribution requirements and pension expense. Beneficiaries who may have previously thought their defined benefit (DB) pensions were guaranteed have been reminded that a key element […]