pension liabilities – Benefits Canada.com

Quantitative easing windup, inflation likely to benefit pension plans: expert

Gideon Scanlon — Thu, 28 Oct 2021 17:45:45 +0000

The end of Canada’s quantitative easing strategy and higher than expected interest rates will be beneficial to Canadian defined benefit pension plans, according to Sebastien Betermier, an associate professor of finance at McGill University’s Desautels Faculty of Management. On Wednesday, Tiff Macklem, governor of the Bank of Canada, announced plans to end its quantitative easing policy and […]

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Volatile quarter increasing DB pension liabilities: report

Gideon Scanlon — Tue, 05 Oct 2021 16:30:50 +0000

Increasing yield for long-term government bonds and a flat credit spread through the third quarter of 2021 are driving up defined benefit pension liabilities, according to a new report by Aon. In the third quarter of 2021, long-term Government of Canada bond yields increased by 14 basis points while credit spreads remained largely unchanged. According […]

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Pension annuity transactions in Canada totalled $4.45BN in 2020: report

lbailey — Wed, 21 Jul 2021 19:00:26 +0000

Despite market upheaval as a result of the coronavirus pandemic, the Canadian pension risk transfer market had its third-best year for group annuity transactions, according to Eckler Ltd.’s latest report. By the end of 2020, pension risk transfer market transactions totalled $4.45 billion, only slightly behind 2018’s $4.5 billion but below 2019’s $5.2 billion, noted the report. […]

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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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GM Canada transferring $1.8BN in pension liabilities via group annuity buyout

bwolfe — Thu, 08 Apr 2021 13:00:03 +0000

General Motors of Canada Co. is transferring the longevity risk for $1.8 billion in pension plan liabilities through a group annuity buyout. Jennifer Wright, director of communications at GM Canada, said in a statement that the automaker has been taking steps to reduce risk and strengthen its retirement plans with a view to protecting the […]

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DB buyouts expected to grow

mschmit — Wed, 25 Mar 2015 17:26:20 +0000

Demand grows as firms look to shed pension liabilities.

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