going concern – Benefits Canada.com

Newfoundland and Labrador granting MEPPs permanent solvency funding exemption

bwolfe — Thu, 12 Aug 2021 13:00:13 +0000

The government of Newfoundland and Labrador is amending funding rules for the province’s multi-employer pension plans. The amendments include a permanent exemption from solvency funding requirements for MEPPs, retroactive to Dec. 31, 2020, when the previous temporary exemption ended. In addition, going-concern unfunded liabilities must now be funded over 10 years instead of the previous […]

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CAAT posts 11.1% return for 2020

bwolfe — Mon, 26 Apr 2021 19:00:59 +0000

The Colleges of Applied Arts and Technology Pension Plan is reporting an 11.1 per cent return for 2020, exceeding its policy benchmark by 0.4 per cent. The return brings the annualized 10-year net return to 9.9 per cent, providing $1.7 billion in cumulative added value compared to the benchmark, while funding reserves increased to $3.3 […]

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Funding status down, alternative investments up among DB pension plans: survey

bwolfe — Fri, 05 Mar 2021 05:00:53 +0000

The funding status and confidence of Canadian defined benefit pension plans declined in 2020 amid the coronavirus pandemic and a low interest-rate environment, according to a new survey from RBC Investor & Treasury Services. It found among 122 respondents, 50 per cent reported their plans were fully funded on a going-concern basis, down significantly from […]

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Pension plans’ 2020 financial results impacted by coronavirus pandemic

bwolfe — Thu, 04 Mar 2021 05:00:13 +0000

Canada’s largest pension plans are reporting mixed financial results from a year marked by the coronavirus pandemic. The Caisse de dépôt et placement du Québec reported a 7.7 per cent return on its depositors’ funds in 2020, representing $24.8 billion in investment results. As at Dec. 31, 2020, the Caisse’s net assets totalled $365.5 billion, up […]

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Learn more about the Risk Management Award finalists

mschmit — Mon, 30 Nov 2020 04:06:28 +0000

The Canadian Investment Review’s Risk Management Award will go to a pension plan that has successfully implemented a robust approach to its risk management function. This can include implementing de-risking or re-risking or it can showcase day-to-day processes in place for risk management in pension plan investments. Highlights about the three finalists are available below: […]

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Nav Canada, Goodyear Canada share experiences with LDI in low interest rate world

mschmit — Thu, 19 Nov 2020 04:04:29 +0000

Despite the low interest rate environment, it still makes sense for defined benefit pension plan sponsors to adopt a liability-driven investment strategy, said Serge Lapierre, global head of LDI at Manulife Investment Management, during a webinar sponsored by the firm on Monday. LDI investing is a risk management framework, he noted. “It’s not an asset […]

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The impact of coronavirus on pension funding status, asset mix

mschmit — Wed, 25 Mar 2020 10:23:08 +0000

With asset deterioration due to drops in equity markets and a decrease in long-term government bond yields causing an increase in solvency liabilities, pension funds are in a tough position. A Canadian defined benefit solvency funding calculation assumes some plan members will elect to take a commuted-value lump sum, while other members will elect to […]

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Expanding the benchmarks for pension funding status

mschmit — Mon, 22 Apr 2019 05:52:13 +0000

Since using a single benchmark portfolio to measure a pension plan’s funding status paints a narrow picture, a new report by PBI Actuaries and Consultants looked at four different portfolio types to see how the equity fall off at the end of the year, among other market events, affected different asset mixes. The liability portfolio kept […]

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CAAT funding status reaches 120%

mschmit — Mon, 11 Mar 2019 06:16:32 +0000

The Colleges of Applied Arts and Technology pension plan has reached a going-concern funding status of 120 per cent as of Jan. 1, 2019, up from 118 per cent last year. Along with the increased funded status, the plan’s funding reserve rose from $2.3 billion to $2.6 billion. The CAAT’s funding policy includes six funding […]

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Revisiting the commuted-value standard

mschmit — Thu, 21 Feb 2019 05:06:12 +0000

The Actuarial Standards Board is consulting on changes to key components of how the commuted value for a pension plan is calculated. The commuted-value standard is used to determine how much to pay a terminating plan member who chooses to take their pension payment as a lump sum. It’s also a key part of calculating […]

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