Quebec has published new draft regulations aimed at helping the administrators of supplemental pension plans to navigate the coronavirus pandemic. The proposed regulations would allow plan members to maintain their active membership in a supplemental plan even if they’re experiencing a temporary suspension in accruing benefits, as long as that suspension began in 2020 and doesn’t last longer than […]
When Canadian taxpayers are on the hook for public sector pension plan obligations, these institutions must spell that out clearly in their financial reporting, according to a new paper by the C.D. Howe Institute. “Reporting of pension costs as they accrue and net obligations at a point in time is tricky,” wrote William Robson, the organization’s chief […]
While the Pension Investment Association of Canada strongly supports Nova Scotia’s recent pension funding changes, it’s calling on the provincial government to tweak the provision for adverse deviation calculation and access to solvency reserve accounts. Nova Scotia’s pension funding changes took effect on April 1, reducing solvency funding to 85 per cent, with any shortfalls required to be […]
A new paper is evaluating how global retirement systems are faring in the wake of the coronavirus pandemic and what reforms will be required to facilitate the retirements of future generations. The paper, ‘Building better retirement systems in the wake of the global pandemic,’ by Olivia Mitchell, a professor and executive director of the pension research council […]
Employers that act as pension plan administrators have statutory fiduciary duties that are defined by the plan documents and by governing pension legislation. While those duties continue to apply during the coronavirus pandemic and the resulting market volatility, they require even more careful navigation, as cash flow and internal corporate resources may be strained. Pension regulators across […]
The federal government and several provinces are signing a new agreement regarding administration and regulation of multi-jurisdictional pension plans. The provincial governments of British Columbia, Alberta, Saskatchewan, Ontario, Quebec, New Brunswick and Nova Scotia are all on board with the agreement, which replaces the 2016 version, only signed by some provinces; a 1968 reciprocal agreement signed between all […]
The first quarter of 2020 was rough for Ontario defined benefit pension plans as they experienced the most significant quarterly decline in projected solvency ratios since December 2009, according to a new report by the Financial Services Regulatory Authority of Ontario. In particular, the median projected solvency declined to 85 per cent as of March […]
The Association of Canadian Pension Management’s Alberta regional council is highlighting the need for “made-in-Alberta” measures focused on pension plan sponsors, administrators and members due to the financial impact of the coronavirus pandemic. In a submission to the provincial government, the council listed recommendations around pension contributions and funding, commuted values, plan administration, defined contribution […]
The funded status of the Segal Group Inc.’s model multi-employer pension plan fell from 95 per cent to 86 per cent during the first quarter of 2020, according to a new report by the firm. The model’s portfolio is comprised of 55 per cent equities and 45 per cent bonds. Overall, its investments saw dismal […]
The Office of the Superintendent of Financial Institutions is relaxing its freeze on portability transfers to automatically permit pension plan members who are eligible for early retirement to transfer their commuted values to locked-in savings vehicles, subject to certain conditions. At the end of March, the OSFI introduced a temporary freeze on portability transfers, meaning […]