With asset deterioration due to drops in equity markets and a decrease in long-term government bond yields causing an increase in solvency liabilities, pension funds are in a tough position. A Canadian defined benefit solvency funding calculation assumes some plan members will elect to take a commuted-value lump sum, while other members will elect to […]
Air Canada’s domestic registered defined pension plans are expected to maintain a “significant pension solvency surplus,” according to a press release. On Monday, the Montreal-headquartered airline withdrew its previously announced first quarter and full year 2020 guidance, as well as its full year 2021 guidance. The ongoing coronavirus crisis means Air Canada “is facing a […]
The Colleges of Applied Arts and Technology pension plan’s funding status dipped slightly in 2019, to 118 per cent on a going-concern basis from 120 per cent in 2018. In its latest actuarial valuation report, the CAAT attributed the solid status to excellent investment returns over the past 10 years, as well as its membership growth strategy, […]
The OPSEU Pension Trust saw a strong 2019, ending the year with an 11.2 per cent net investment return and maintaining its fully funded status. The plan’s total assets grew from almost $20 billion of net assets in 2018 to almost $22 billion in 2019, according to its 2019 funded status report. In other highlights from […]
The solvency levels of Canadian defined benefit pension plans are down off the back of roiling equity and bond markets in the wake of the coronavirus outbreak. Aon’s latest median solvency ratio survey found DB plans were down 6.7 per cent on average, from 102.5 per cent in early January to 95.8 per cent at […]
The Ontario Court of Appeal has ruled that Bell and its related companies, including Bell Canada, Bell Media Inc., Expertech Network Installation Inc. and Bell Mobility Inc., have been miscalculating the cost-of-living adjustment due to their 35,000 pensioners since 2017. The judgment could cost the telecommunications company up to $100 million and signal the beginning of […]
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 […]
Quebec’s closed the door on the idea of forming a pension benefits guarantee fund to protect members in retirement plans sponsored by employers that have declared bankruptcy. Finance Minister Éric Girard said Tuesday that no such measure would be included in the provincial budget set to be released March 10, reported Radio-Canada. In explanation, Girard […]
The City of Toronto has completed the transfer of its Metropolitan Toronto Pension Plan to the Ontario Municipal Employees Retirement System. The Metro plan was the last of the City’s four defined benefit plans to move to OMERS, following the Corporation of the City of York Employee Pension Plan, the Metropolitan Toronto Police Benefit Fund […]
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 […]