Annuities – Benefits Canada.com

Expert panel: Inflation risk — to hedge or not to hedge?

Gideon Scanlon — Thu, 25 Nov 2021 17:30:10 +0000

With October inflation hitting an 18-year high, inflation risk is back on the radar of plan sponsors providing inflation-linked defined benefit pensions. In the past, it’s been challenging to hedge inflation risk. Fortunately, more efficient solutions have emerged over the last several years. What is inflation risk? For a plan that provides inflation-linked benefits, inflation […]

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Domestic equity returns bolstering Canadian DB pension plan solvency: report

Gideon Scanlon — Tue, 09 Nov 2021 14:00:34 +0000

The average Canadian defined benefit pension plan saw improvements on a solvency and accountancy basis in October, according to LifeWorks Inc.’s monthly report. Its monthly report on DB pension indices found the average plan saw its solvency index rise to 111.5 per cent, up from 108.8 per cent at the end of September and a […]

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More U.S. not-for-profit employees participating in retirement savings plans: survey

bwolfe — Wed, 20 Oct 2021 13:00:45 +0000

Despite the coronavirus pandemic’s impact on the U.S. not-for-profit sector in 2020, employees participated in 403(b) retirement plans at the highest level since tracking began in 2008, according to a new survey by the Plan Sponsor Council of America. The survey, which polled roughly 400 not-for-profit retirement plan sponsors, found overall retirement plan participation rose to […]

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Health benefits claims paid out to support mental health rose 24% in 2020: CLHIA

Jennifer Paterson — Wed, 15 Sep 2021 13:00:53 +0000

Canadian insurers paid out more than $97 billion in benefits from life and health insurance products in 2020, according to the Canadian Life and Health Insurance Association’s annual fact book. The period, which included the first nine months of the coronavirus pandemic, included $420 million paid out for psychology-related claims to support mental health, up 24 […]

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CLHIA calling for increased access to VPLAs, prescription drugs

bwolfe — Mon, 09 Aug 2021 19:00:32 +0000

The Canadian Life and Health Insurance Association is calling on the federal government to permit standalone variable payment life annuities to pool participants from all registered retirement plans. In its 2022 federal budget submission, the CLHIA said VPLAs, as enacted, will only be available to members of very large defined contribution pension plans, excluding Canadians […]

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CIA updating guidance for pension windup, solvency valuations

bwolfe — Thu, 05 Aug 2021 13:00:41 +0000

The Canadian Institute of Actuaries is updating its process for releasing guidance regarding assumptions for hypothetical pension windup and solvency valuations. For quarterly guidance relating to periods from March 31 to Dec. 30, June 30 to Dec. 30 and Sept. 30 to Dec. 30, an explanatory report providing supporting material will be issued after the […]

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CAPSA developing multi-jurisdictional VPLA framework for DC pension plans

bwolfe — Wed, 04 Aug 2021 13:00:25 +0000

The Canadian Association of Pension Supervisory Authorities is developing a framework for defined contribution pension plans to offer variable payment life annuities. In developing the framework, the CAPSA said it will address topics such as plan design and conversion options, as well as member disclosure, spousal consent, plan termination, investment rules and regulatory oversight for […]

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New longevity pension fund offers decumulation option for plan sponsors

bwolfe — Mon, 07 Jun 2021 13:00:28 +0000

Purpose Investments Inc. is introducing a new longevity pension fund, which invests 50 per cent in equities and 50 per cent in fixed income. It can be incorporated into a defined contribution plan to provide plan members with an in-plan decumulation option, says Pat Leo, vice-president of retirement solutions at Purpose Investments, noting investors can redeem […]

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Head to head: Should plan sponsors buy annuities via insurers or go DIY?

bwolfe — Fri, 14 May 2021 12:59:54 +0000

Two experts weigh in on the merits and drawbacks of taking the traditional annuities route versus opting for the newer do-it-yourself option. Marco Dickner, retirement risk management leader for Willis Towers Watson in Canada Although annuity purchases have become an important pension risk management option over the last decade, a countertrend is emerging for plan […]

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Looking under the hood of jumbo transactions

mdunne — Tue, 11 May 2021 13:53:25 +0000

The recent announcement that General Motors of Canada Co. purchased $1.8 billion of annuities for its salaried pension plan is creating a lot of excitement. GM Canada joins a growing list of plan sponsors who’ve purchased sizeable annuities in the last few years: Stelco Inc. ($885 million), Alcoa Corp. ($750 million), Rio Tinto Group ($560 […]

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