While the Pension Investment Association of Canada is applauding proposed changes to Manitoba’s Pension Benefits Act that would allow for in-plan solvency reserve accounts for defined benefit pension plans, it’s calling on the province to make further reforms. In a letter to Manitoba’s Finance Minister Scott Fielding, the PIAC said the suggested amendments, which were introduced in November […]
Squeezed by onerous funding requirements and overarching fiduciary duties, defined benefit plan sponsors are increasingly willing to embrace alternative structures — such as multi-employer pension plans, jointly sponsored pension plans and pooled registered pension plans — to relieve some of the pressure. “Most employers simply shouldn’t be in the business of running a pension plan, […]
The first major reform to the U.S. retirement system in a decade, the Setting Every Community Up for Retirement Enhancement Act, contains provisions that could be useful guides for Canadian legislators and regulators. Signed into law by President Donald Trump in December, the act, known as SECURE, is primarily aimed at addressing Americans’ difficulty in […]
The Canada Pension Plan enhancements are a strong start but the country needs to do more to help people prepare for retirement, according to a new report from Ryerson University’s National Institute on Ageing. The paper — authored by Keith Ambachtsheer, director emeritus of the International Centre for Pension Management, and Michael Nicin, executive director of […]
Ontario’s Workplace Safety and Insurance Board is converting its defined benefit pension plan to a jointly sponsored model, making it the first single-employer plan in Canada to make the change. The Financial Services Regulatory Authority of Ontario approved the move on Dec. 5, 2019, and the conversion is expected to take place on July 1, 2020. […]
The Canadian Life and Health Insurance Association is highlighting new retirement savings options and access to cheaper drugs in its priorities for the Quebec and Newfoundland and Labrador provincial budgets. In its submission to Newfoundland’s finance minister, the CLHIA called for the government to make pooled registered pension plans available in the province. Citing Statistics Canada data that […]
After years of consultation, the Canadian Institute of Actuaries’ Actuarial Standards Board has finalized changes to key components of how commuted values payable from pension plans are calculated. Among other applications, 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 […]
CARP is highlighting the need for further protections for defined benefit pensions in its 2020 Ontario budget priorities. The submission noted CARP, formerly the Canadian Association of Retired Persons, supports the steps taken by the Financial Services Regulatory Authority of Ontario and the provincial government to bolster innovation in DB plan design, as well as reducing red […]
Pension plan sponsors in Ontario are celebrating a small win. The government is changing the rules so plans with less than $10 million in assets will no longer be required to file annual audited financial statements. Since 1992, plans with less than $3 million in assets weren’t required to file audited financial statements with the […]
A potential Alberta Pension Plan would expose Albertans to material underwriting risks and the potential for political involvement in decisions about the plan’s investment policy, according to a new report. The report — authored by Keith Ambachtscheer, founder of KPA Advisory Services Ltd. and adjunct professor at the University of Toronto’s Rotman School of Management — also estimated […]