Solvency funding – Benefits Canada.com

Head to head: Should Canadian governments eliminate pension solvency funding rules?

Jennifer Paterson — Fri, 19 Nov 2021 13:59:37 +0000

With defined benefit pension solvency reforms gradually coming in across the country, two experts debate whether there’s a better way to ensure DB plan sustainability and security. Todd Saulnier, vice-president, the Association of Canadian Pension Management’s board of directors The answer is mostly yes. A floor of 85 per cent of solvency liability might be […]

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Solvency reserve accounts missing from Manitoba’s new pension amendments

mdunne — Wed, 29 Sep 2021 13:00:53 +0000

Although Manitoba’s Pension Amendments Act takes effect on Oct. 1, pension plan sponsors are disappointed that the provisions allowing them to use reserve accounts to fund solvency deficiencies have been excluded from the proclamation. “The government has not indicated when the reserve account provisions will come into effect and sponsors are anxious because they would […]

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ACPM calling on OSFI to address funding asymmetry in DB pension regulation

Gideon Scanlon — Tue, 21 Sep 2021 13:00:39 +0000

The Association of Canadian Pension Management is calling on the Office of the Superintendent of Financial Institutions to address funding asymmetry in its approach to regulating defined benefit pension plans using a portfolio replicating approach. In an open letter to the OSFI, Ric Marrero, the ACPM’s chief executive officer, raised concerns related to planned revisions […]

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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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Canadian DB pensions’ funding positions improve in June as bond returns level off: report

Gideon Scanlon — Fri, 09 Jul 2021 19:00:44 +0000

The funded position for an average Canadian defined benefit pension plan improved slightly on both a solvency and accounting basis in June, according to a new report by LifeWorks Inc. (formerly Morneau Shepell Ltd.) The average solvency ratio was 109.3 per cent in June, compared to 108.2 per cent in May. On an accounting basis, the average […]

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Sears Canada retirees’ group says bankruptcy laws unjust for pensioners

mdunne — Thu, 10 Jun 2021 13:30:26 +0000

Canada’s bankruptcy laws should be changed to avoid future financial hardship for members of other underfunded pension plans, said a court-appointed representative for Sears Canada retirees. Kenneth Eady, a former Sears Canada management employee who now represents 17,000 other pensioners, told MPs on Tuesday that he doesn’t believe it’s fair that Canada’s two bankruptcy laws give banks more protection […]

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Nova Scotia Teachers’ underperforms benchmark in 2020, facing independent review

mdunne — Tue, 04 May 2021 13:00:35 +0000

The Nova Scotia Teachers’ Pension Plan returned 6.78 per cent in 2020, increasing net assets to $5.519 billion, but falling short of the policy benchmark of 7.96 per cent. The plan did outperform the actuarial assumed rate of return of 5.70 per cent. “Like many pension plans across the country impacted by COVID-19, we saw […]

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PIAC calling on feds to reform pension solvency rules, introduce VPLAs

mschmit — Fri, 22 Jan 2021 05:00:25 +0000

The Pension Investment Association of Canada is calling on the federal government to reform pension solvency rules while supporting legislation to introduce solvency reserve accounts and variable-payment life annuities. In response to a federal consultation paper, the PIAC said while it supports temporary relief measures amid the current economic climate, it cautioned against an approval […]

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Back to basics on the provision for adverse deviation

mschmit — Fri, 20 Nov 2020 04:56:40 +0000

Defined benefit plan sponsors can’t predict the future — but with a provision for adverse deviation, they can at least plan for it. “Given the work that actuaries do, where it’s all about quantifying risks and all these unknowns, it’s always best to be conservative,” says Andrew Gillies, partner and consultant at Robertson, Eadie & […]

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Ontario DB pension solvency up again in third quarter: FSRA

mschmit — Wed, 11 Nov 2020 04:45:50 +0000

The solvency ratio of Ontario’s defined benefit pension plans jumped four per cent in the third quarter of 2020, according to an update by the Financial Services Regulatory Authority of Ontario. The increase is further evidence that market recovery is well underway since the coronavirus pandemic rocked the world economy in early 2020, noted the […]

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