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Overall lack of pensions narrows retirement income gap between men and women

Overall lack of pensions narrows retirement income gap between men and women As today’s women shatter glass ceiling after glass ceiling they are narrowing the gap with men in all walks of life. However, when it comes to retirement income, the lack of adequate pension provision for both sexes is becoming an unfortunate equalizer. The absence of workplace pension plans has resulted in a kind of race to ...more

Quebec’s VRSP model aims at workers without a pension plan

Quebec’s VRSP model aims at workers without a pension plan Whether it’s NEST in the United Kingdom, Australia’s superannuation system, the KiwiSaver in New Zealand, or the new VRSP in Quebec, all have one thing in common: a realization that people need some sort of nudge to help them save for retirement. The DC-type plans have some key differences, but a core element is a requirement ...more

Mandatory aspect of ORPP a bold initiative, says Jo-Ann Hannah of Unifor

Mandatory aspect of ORPP a bold initiative, says Jo-Ann Hannah of Unifor Retirement anxiety is a real and tangible concern for millions of Canadians. More than 60 per cent don’t have an occupational pension plan, and for them the traditional notion of the ‘golden years’ is fast becoming unattainable. Efforts are being made to solve the riddle of inadequate retirement income, with solutions including the promised Ontario Retirement ...more

Stay focused on market volatility, says AIMCo’s Leo de Bever

Stay focused on market volatility, says AIMCo’s Leo de Bever As Canadian pension plans surge back towards surplus on the strength of stellar 2013 investment returns, cooler heads realize the good times won’t last forever and that funds need to continue to manage risk to keep the pension benefits flowing to retirees. Leo de Bever seems to fit comfortably into this group of cautious managers. The ...more

Anxious workers would trade pay for pension benefits

Anxious workers would trade pay for pension benefits Canadians are becoming increasingly anxious that their retirement years may not be as golden as once imagined, and they are willing to bargain with employers to achieve greater retirement security. A report by Towers Watson, the Global Benefits Attitude Survey, reveals Canadians are so concerned about their retirement readiness, they are willing to trade wages for ...more

Saskatchewan Healthcare Employees’ Pension Plan Applauds the Appointment of New CEO Alison McKay

Saskatchewan Healthcare Employees’ Pension Plan Applauds the Appointment of New CEO Alison McKay The Saskatchewan Healthcare Employees’ Pension Plan (SHEPP) is pleased to announce the appointment of Alison McKay as Chief Executive Officer (CEO). Alison was selected to replace former CEO Brad Garvey who left the organisation in April, 2013 due to a sudden and unexpected illness. “I’m looking forward to the challenges ahead as SHEPP builds on recent ...more

ARIA exclusive: Adequate retirement income good for people and economy: Murray Gold

ARIA exclusive: Adequate retirement income good for people and economy: Murray Gold Even though analysis shows that an expanded Canada Pension (CPP) would benefit younger Canadians more than it would boomers at or near retirement’s door, some opponents of higher contributions to pay for better benefits insist younger Canadians would be footing the bill for an older generation that hasn’t saved enough. It would take decades for higher ...more

Increased longevity fuels retirement-income anxiety

Increased longevity fuels retirement-income anxiety The good news is that Canadians are indeed living longer and generally healthier lives. The bad news is that where there is life there is expense and Canadians, notably those not in a defined benefit pension plan, have to come up with the money to fund those extra years. And as Ian Markham, Retirement Innovation Leader ...more

Data shows pension coverage a problem for the private sector

Data shows pension coverage a problem for the private sector Pension experts across the developed world agree that a retirement crisis driven by the lack of adequate retirement income will have serious consequences for individuals and economies. The range of dire outcomes from not having enough retirement income include an increase in the rates of senior poverty, people simply not having enough income to ever fully ...more

Savings program designed to get workers in the habit of preparing for retirement

Savings program designed to get workers in the habit of preparing for retirement It’s not a pension plan, but it does have at least one important component of one: payroll deduction. And one of the hopes for it is that it will at least get low-income people without much in the way of potential retirement money to begin saving. The myIRA concept Barrack Obama announced in his State of ...more

NB retirees continue to fight for their pensions

NB retirees continue to fight for their pensions Politicians have learned to tread lightly when it comes to retirees and their pensions. Former Prime Minister Brian Mulroney will likely attest to that, remembering his encounter with a senior citizen during a 1986 protest in Ottawa. Mulroney had made a decision to partly de-index pensions, a move that earned the ire of protester Solange Denis, ...more

Lack of CPP reform unfair to younger Canadians: Mathyssen

Lack of CPP reform unfair to younger Canadians: Mathyssen Intergenerational fairness is a term often used in the context of pension reform, with opponents of measures to improve retirement security often asking whether younger Canadians should be on the hook for boomers who haven’t been able to accumulate sufficient retirement income. The chatter is most often heard in relation to proposals to beef up Canada ...more

Time to deal with retirement insecurity: Rankin

Time to deal with retirement insecurity: Rankin As Murray Rankin moves across the country meeting with ordinary Canadians “of a certain age” about pressing issues of today and tomorrow, including the provision of adequate retirement income, he wishes he could see some younger faces in the crowds. Particularly on retirement issues, which many experts and observers predict will impact younger Canadians as much ...more

We’re All Invested – DB plans “part of the solution” in addressing retirement income crisis

We’re All Invested – DB plans “part of the solution” in addressing retirement income crisis A retirement income crisis awaits us if action is not taken on expanding workplace pension coverage in Ontario and across the country. That was one of the key messages delivered at “We’re All Invested,” an information session held March 17 at the MaRS Centre in Toronto. The event was sponsored by the Healthcare of Ontario Pension ...more

Alberta pension plans set to return to surplus without any changes: McGowan of the AFL

Alberta pension plans set to return to surplus without any changes: McGowan of the AFL Public sector pension plans are the cornerstone of retirement security for more than 300,000 Albertans, and if changes need to be made to them, the reasons should be justified and transparent, says Gil McGowan, president of the Alberta Federation of Labour. However, the changes to the province’s pension plans being pushed by the Alberta government are ...more

Collective approach needed for DC to work: Baldwin

Collective approach needed for DC to work: Baldwin A conversation with noted pension authority Bob Baldwin is not a this-or-that exercise. Rather, when discussing the provision of adequate retirement income, the dialogue is more of a nuanced exploration of issues, challenges and solutions. If it’s absolutes you seek when it comes to retirement and pension questions, Baldwin offers a broader perspective. For instance, he ...more

DC retirement shifts planning burden onto individual’s shoulders

DC retirement shifts planning burden onto individual’s shoulders For a member of a traditional pension plan, the defined-benefit model, transitioning into retirement is a relatively simple process: you let your employer know you are moving on, sign some papers and wait for the pension to arrive, probably through direct deposit into your bank account. However, for the more than 60 per cent of Canadians ...more

DC plans need DB investment focus: Dickson

DC plans need DB investment focus: Dickson How to address retirement anxiety and provide an adequate income is a growing problem being tackled by pension systems and retirement experts throughout the developed world, with one country’s problems sounding very similar to another’s. A number of options have been discussed in Canada to resolve retirement income inadequacy, including expanding the Canada Pension Plan. In ...more

Pension costs not to blame for perceived financial woes of American cities, study finds

Pension costs not to blame for perceived financial woes of American cities, study finds With the bankruptcy of Detroit and other American cities said to be teetering on a similar precipice, some American observers are predicting widespread calamity, with unfunded pension liabilities catching much of the blame. However, a report from the Center for Retirement Research at Boston College reveals pension costs are not the driving force behind the financial ...more

Provincial government announces Jim Keohane to help design made-in-Ontario pension solution

Provincial government announces Jim Keohane to help design made-in-Ontario pension solution Healthcare of Ontario Pension Plan (HOOPP) President & CEO Jim Keohane has been asked by the Ontario government to serve on the Technical Advisory Group on Retirement Security that will work on the development of a new Ontario pension solution, designed to strengthen retirement income security for people across the province. While serving on this ...more

In The Headlines
How much do you need to save to mirror DB income? – ARIA post

(July 30, 2014) Writing at www.torontosun.com, senior investment advisor Doug Riding states the attributes of a defined benefit pension plan, which include providing “a predetermined level of income at retirement based on a formula set out in the plan.” When recipients of DB income add CPP and OAS benefits, the fixed income “component of your retirement ...more

ORPP designed to address problem of inadequate retirement income – ARIA post

(July 30, 2014) The Ontario Liberals say the main purpose of the new provincial pension plan is to address the issue of inadequate retirement income, and they aren’t worried about the “sticker shock” of the new plan, writes Robert Benzie in the Toronto Star. The politician Ontario Premier Kathleen Wynne has tapped to guide the Ontario ...more

DB plans reap rewards of strong markets – ARIA post

(July 30, 2014) Continuing to be driven by strong global markets, Canadian pension plans saw assets increase for a fourth consecutive quarter according to a survey from RBC Investor & Treasury Service, reports www.bpmmagazine.com. Canada’s defined pension plans “returned three per cent during the second quarter bringing year-to-date results to 7.8 per cent,” reports www.bpmmagazine.com, with ...more

Teachers’ does the math and concludes airports a wise investment – ARIA post

(July 30, 2014) Teachers’ is interested in taking solo flight with a British airport in which it already owns nearly 50 per cent, writes Jacqueline Nelson in the Globe and Mail. The Ontario Teachers’ Pension Plan has indicated it’s eyeing the other half of Bristol International Airport, currently owned by Australia’s Macquarie Group. The Ontario plan might ...more

Default mechanism could increase confidence in DC schemes – ARIA post

(July 29, 2014) While members of defined benefit plans enjoy the comfort of knowing that they will have a lifetime stream of retirement income, the situation is reversed with defined contribution schemes, members of which don’t really know how much they will have or if their savings will last. As reported in Benefits Canada, retirement confidence ...more

How will we fund all those extra years? – ARIA post

(July 29, 2014) The chances of living to a ripe old age as defined by current longevity standards are pretty good, but people need to be prepared financially if indeed the 100 year mark beckons, writes Lisa Wright in the Toronto Star. A new survey from BMO Wealth Institute finds that over the next 50 years, ...more

Sponsors take steps to manage risk – ARIA post

(July 29, 2014) As pension funds surge back to surplus status on a wave of strong investment returns, plan managers are taking deliberate action to mitigate future risk, writes William da Silva in Benefits Canada. According to an Aon Hewitt study earlier in the year, a number of American sponsors are “likely to take more deliberate actions ...more

AIMco’s de Bever advises plans to seek ‘new frontier’ investments – ARIA post

(July 29, 2014) Leo de Bever, CEO of the Alberta Investment Management Corp. (AIMco), is calling for pension funds to get out of their comfort zones and look to “the next frontier” of long-term investing, reports www.bpmmagazine.com. Speaking to an audience at the CFA Institute conference, de Bever said that AIMco is seeking the “big themes” in ...more

Canadians fret over retirement medical expenses – ARIA post

(July 28, 2014) As Canadians age and worry about retirement related expenses, a new BMO study concludes that health and medical costs will be the biggest draw on the bank account, reports CTV News. The study,  Living to 100: The Four Keys to Longevity, indicates nearly two-thirds of Canadians conclude that medical costs will be the ...more

Changes to PBA clarify who gets death benefit – ARIA post

(July 28, 2014) With the new Ontario Retirement Pension Plan (ORPP), along with the rest of the budget, getting royal assent last week, other pension related changes may have gone unnoticed. Included in the budget were changes to the Pension Benefits Act (PBA), designed to address the decision of the Ontario Court of Appeal in Carrigan v. ...more

ORPP’s introduction similar to that of universal health care – ARIA post

(July 28, 2014) The new Ontario Retirement Pension Plan (ORPP) and the introduction of universal health care have something in common, writes Adam Mayer in the Toronto Star. Both were big, innovative ideas that got a rough ride. Big ideas are often challenged because they represent a threat to the status quo and “the entrenched interests ...more

Teachers’ looks to buy rest of Bristol Airport – ARIA post

(July 28, 2014) The Ontario Teachers’ Pension Plan (OTPP) is preparing to take flight with the purchase of a British airport, reports Yahoo News. Teachers’, according to the report on Yahoo, is likely to buy the rest of Bristol Airport for as much as ($424.6 million), reports a source. The fund already owns 49 per cent of the ...more

American public pensions post record earnings – ARIA post

(July 25, 2014) More good news for pension plans comes with the news that American public pensions recorded their largest ever investment earnings in the first quarter of 2012, reports www.investmentreview.com. According to to U.S. census, the plans earned $179.2 billion, “offering some hope to the retirement systems for state and local governments that were battered during ...more

Employee focus pays dividends when communicating pension information – ARIA post

(July 25, 2014) Communicating pension information to plan members takes many different forms, and often the results are left wanting, writes Frank Wiginton in Benefits Canada. He has some suggestions to make the effort more productive. Companies, he writes, should first and foremost put employees first, and refrain from discussing the company’s pension concerns. Rather, they should ...more

Canada’s financial literacy leader puts initial focus on seniors – ARIA post

(July 24, 2014) The federal government has decided to focus on seniors as the first priority for its new financial literacy campaign. Younger Canadians will get their turn later, but for now the gaze is on seniors and how they manage their money, writes Rob Carrick in the Globe and Mail. To find out why the initial ...more

New Alberta act does not include Bill 10 provisions – ARIA post

(July 24, 2014) Alberta has announced its approval of regulations to its Employment Pensions Plans Act, reports www.bpmmagazine.com. The new act and its regulations will kick off Sept. 1, and concludes a process that started in 2007 “with the appointment of the Alberta/British Columbia Joint Expert Panel on Pension Standards.” The legislation won’t, however, have amendments from ...more

Other provinces ponder their own retirement solutions – ARIA post

(July 24, 2014) With the Ontario budget and the Ontario Retirement Pension Plan (ORPP) adopted by the Legislature, the government is now free to develop its plan to respond to the lack of retirement preparedness in the province, a concern that runs though the rest of Canada. With more than 60 per cent of Canadians not ...more

Bank finds connection between lower wages and not being able to retire – ARIA post

(July 23, 2014) A connection between lower wages and people waiting longer to retire is being suggested by the Bank of England, reports The Telegraph. According to the bank, average weekly earnings in the United Kingdom have declined even though the economy added almost 350,000 jobs in March and April, reports The Telegraph. Wages, say Bank ...more

Workers miss out on full employer contribution match – ARIA post

(July 23, 2014) Having an employer who matches employee pension contributions is an important component of saving enough for a comfortable retirement, but not all American workers are putting enough aside to receive the maximum employer contribution, reports Benefits Canada. According to a TIAA-CREF survey, 78 per cent of Americans contributing to an employer-sponsored plan get matching ...more

Pension smoothing puts plans at risk – ARIA post

(July 23, 2014) In a case of robbing Peter to pay Paul, the US Congress has linked highway repairs with what is called ‘pension smoothing,’ reports The Economist. To get the funds to repair roads and bridges, which should be funded by a bigger gas tax but isn’t, Congress is letting companies engage in pension smoothing, ...more