pension solvency funding – Benefits Canada.com

Air Canada, unions reach agreement to wind down pension trust

Jennifer Paterson — Tue, 30 Nov 2021 14:00:49 +0000

Air Canada and unions representing more than 20,000 employees are reaching an agreement that will wind down a shared pension trust to the benefit of retired workers who are part of the company’s defined benefit plans. The airline was granted relief from pension solvency funding when facing insolvency in 2009. As part of the arrangement, […]

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Expert panel: How could inflation impact DB pension plans?

mdunne — Tue, 26 Oct 2021 13:00:17 +0000

After being off of Canadians’ radar screens for years, the re-emergence of inflation in recent months is receiving significant attention for many, including pension plan professionals. Some believe the inflationary increases will be transitory because recent price increases are primarily due to short-term disruptions in the Canadian economy caused by the emergence from restrictions due […]

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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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Canadian, U.S. DB pension plan solvency dipped in July: reports

Gideon Scanlon — Tue, 10 Aug 2021 15:00:13 +0000

The solvency status of Canada’s defined benefit pension plans dipped for the first time this year in July, according to a new report by Lifeworks Inc. The monthly pension indices report found the average Canadian DB pension plan saw its solvency ratio dip to 108.7, down 0.6 from the previous month. This is the first […]

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Ontario DB pension plan average funded ratio reaches 106%: report

Gideon Scanlon — Wed, 04 Aug 2021 16:00:52 +0000

More than two-thirds (69 per cent) of registered defined benefit pensions plans in Ontario have solvency ratios above 100 per cent, according to the Financial Services Regulatory Authority of Ontario’s second quarterly update. The report found average funded ratios were up for the fifth consecutive quarter, with the median funded ratio reaching 106 per cent […]

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Top U.S. DB plan funded ratios see first dip since September 2020: report

Gideon Scanlon — Thu, 29 Jul 2021 15:45:34 +0000

The average funded ratio of the top private sector defined benefit pension plans in the U.S. dipped for the first time since September 2020, according to a new index by actuarial firm Milliman. The index, which tracks the funded ratio of the 100 top-performing U.S. private sector DB plans, saw the average ratio dip to […]

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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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Pension solvency measures helping plan sponsors through pandemic and beyond

bwolfe — Fri, 14 May 2021 12:56:59 +0000

While solvency funding relief helped Canada’s pension funds withstand the turbulence of 2020, a long-term vision with an eye to a more robust funding framework would offer better support, according to pensions experts. Responding to the crisis, the federal government launched a consultation last fall on measures to alleviate pension solvency funding requirements for defined […]

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