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 […]
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 […]
The job of a pension consultant has evolved considerably over Bita Jenab’s 30-year career in the field. The mid-1990s saw a greater focus on governance and the arrival of the investment consultant, while the 2000s featured a mass move to defined contribution plans and significant changes to pension legislation. Through all of that, plan sponsors […]
The Canadian Association of Pension Supervisory Authorities’ latest consultation is seeking feedback on amendments to its guideline No. 8 for defined contribution pension plans, focusing on considerations around decumulation, such as communicating variable benefits, assumptions used in retirement projections and fee disclosure. When it comes to withdrawals from a variable benefits plan, according to the amended guideline, plan administrators […]
From decumulation options to investment choice, capital accumulation plan members face several challenges when they reach retirement. On the decumulation front, many members leave their assets with their final employer’s pension provider, which offers group registered retirement income funds or life income funds with well-managed investment options and lower management fees. As well, an increasing number […]
Schroders Investment Management Ltd. is appointing Shawn Cohen as institutional director, a role aimed at building relationships with defined contribution record keepers and third-party asset managers in Canada. Reporting to Ross Servick, Schroders’ head of Canada, Cohen joins the firm from MFS Investment Management Ltd., where he was most recently director of relationship management. Prior […]
With the aging of Canada’s population, the move to defined contribution pension plans in the private sector and increases in life expectancy, the issue of decumulation is growing in importance. Decumulation deals with converting retirees’ savings into periodic income that must last for the rest of their lifetime. That can be a challenge for Canadians who […]
There has been a lot of talk about variable benefits from defined contribution pension plans recently. Ontario has changes in the works to allow them, while a number of provinces have moved on the issue in recent years. And while it’s not yet common for plan sponsors to offer variable benefits, some organizations have had the […]
How are different countries tackling decumulation?
Retirement is on employers’ minds. Employers are revisiting how they view their retirement programs and how they view their role when active employees become retirees, said Nigel Branker, partner and leader of Morneau Shepell’s DC pension consulting practice in Ontario, at the firm’s Trends in Human Resources event in Toronto.