Canadian defined benefit pension plan – Benefits Canada.com

Two decades of low inflation push DB pensions toward alternative investments: Bank of Canada

Gideon Scanlon — Tue, 31 Aug 2021 13:00:09 +0000

Canada’s defined benefit plans are allocating more to alternative investments as a result of a two-decade period of low inflation, according to a new study from the Bank of Canada. It found sustained decreases in interest rates from 1998 to 2018 have threatened to erode private DB plan solvency surpluses. According to the authors — Bank […]

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Canadian DB pensions’ funding positions improve in June as bond returns level off: report

Gideon Scanlon — Fri, 09 Jul 2021 19:00:44 +0000

The funded position for an average Canadian defined benefit pension plan improved slightly on both a solvency and accounting basis in June, according to a new report by LifeWorks Inc. (formerly Morneau Shepell Ltd.) The average solvency ratio was 109.3 per cent in June, compared to 108.2 per cent in May. On an accounting basis, the average […]

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Canadian DB pensions see improved funded position, investment returns: reports

Gideon Scanlon — Mon, 05 Jul 2021 13:00:06 +0000

The aggregate funded ratio for Canadian defined benefit pension plans in the S&P/TSX composite index increased from 94.8 per cent in the first quarter of 2021 to 95.6 per cent in the second quarter, according to a new report from Aon. It also found pension assets rose by four per cent during the same period. The […]

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PIAC warns of ‘unintended consequences’ of pension super-priority bill

Gideon Scanlon — Wed, 23 Jun 2021 17:00:24 +0000

There could be “unintended consequences” if a bill conferring preferred creditor status to defined benefit pension plan members during bankruptcies passes through Canada’s House of Commons, according to an open letter from the Pension Investment Association of Canada. In an open letter, to Michael MacPherson, clerk of the standing committee on industry, science and technology, from Natasha Trainor, […]

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Decline in bond yields signals market observers to be on ‘inflation watch’: report

Gideon Scanlon — Thu, 10 Jun 2021 16:30:49 +0000

The funded position for an average Canadian defined benefit pension plan improved slightly during May, with a solvency of 108.2 per cent, according to a new report by LifeWorks Inc. (formerly Morneau Shepell Ltd.) On an accounting basis, it found expenses for the average pension plan had dropped precipitously since the beginning of 2021, at […]

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UPP appointing first managing director of responsible investing

Gideon Scanlon — Thu, 10 Jun 2021 13:15:32 +0000

The University Pension Plan has appointed Brian Minns as its first managing director of responsible investing. Prior to joining the UPP, Minns spent 10 years working for Addenda Capital Inc, culminating a three-year tenure as its vice-president of sustainable investing. In that role, he was responsible for impact investing and the implementation of environmental, social and […]

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Bankruptcy and insolvency bill will negatively affect struggling DB pensions, says ACPM president

Gideon Scanlon — Tue, 08 Jun 2021 13:00:01 +0000

The Association of Canadian Pension Management is urging parliamentarians to vote down the final version of a new bankruptcy and insolvency bill. If passed, Bill C-253, also titled the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (pension plans and group insurance plans), would force super priority on Canadian pension plan members in […]

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Canada’s DB pension plans post 9.2% return in 2020

mschmit — Tue, 02 Feb 2021 05:06:06 +0000

Despite market uncertainty due to the coronavirus pandemic and a turbulent U.S. presidential election cycle, Canadian defined benefit pension plans ended the year with near double-digit gains, according to a report by the RBC’s Investor & Treasury Services. Amid the once-in-a-century crisis, market returns in 2020 for retirement assets were 9.2 per cent, noted the […]

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