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Lack of adequate retirement income push people to GIS – ARIA post

Lack of adequate retirement income push people to GIS – ARIA post Some traditions are just too good to let go. And if they are discarded or replaced with a lesser brand for the sake of convenience, vested interests, or perception, ramifications often follow. Proponents of ditching the traditional defined benefit pension model in favour of a defined contribution savings scheme might want to consider the results of ...more

Seniors’ fight for retirement rights benefits younger Canadians

Seniors’ fight for retirement rights benefits younger Canadians Governments should have learned a number of truths about seniors. They are engaged, have insight and knowledge gained from a lifetime of experiences, and know how to come out swinging when their interests are challenged. Yet, says Susan Eng, CARP’s vice-president of advocacy, some politicians seem to have forgotten the lessons of time when it comes ...more

Income inequality divides millennials and boomers

Income inequality divides millennials and boomers It seems there is substance to all that anecdotal chatter about 20-somethings returning to the nest after taking off for school and other life lessons, only to find the cost of going it alone too much for a paltry income to sustain. There’s nothing new about young people landing back on their parents’ couch after flying ...more

Municipalities and pension funds natural match of need and opportunity, says chair of LUMCO

Municipalities and pension funds natural match of need and opportunity, says chair of LUMCO Ontario municipalities need capital for infrastructure projects, big and small, while Canada’s big pension plans have an appetite for investing in such projects. It could be the perfect union of need and opportunity, says the chair of the Large Urban Mayors’ Caucus of Ontario (LUMCO). Jeff Lehman, mayor of Barrie and chair of LUMCO, recently wrote ...more

Business needs to make the case for adequate retirement income

Business needs to make the case for adequate retirement income The retired couple contacted his office about a stark choice confronting them: food or heat. They didn’t have enough money for both. A growing number of reports and anecdotal evidence suggests they aren’t alone, as people across Canada struggle with inadequate retirement income, suggesting that the oft-discussed retirement crisis is now at the doorstep of many ...more

Retirees take aim at feds’ target benefit plans

Retirees take aim at feds’ target benefit plans Getting on the bad side of retired Canadians is never a good idea, a lesson one might have thought today’s generation of politicians would have learned from Brian Mulroney when he tried to de-index pensions back in 1986. After incurring the wrath of seniors, particular one irate elderly woman who told him during a protest on ...more

Voluntary ‘doesn’t work’ as a retirement model: Don Ezra

Voluntary ‘doesn’t work’ as a retirement model: Don Ezra In a perfect world Canadians would be saving enough of their working income to provide for a comfortable and secure retirement. But there’s lots of evidence to conclude that when it comes to retirement planning, it’s far from a perfect world. There is plenty of information to suggest that left to their own devices Canadians can’t ...more

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

In The Headlines
Study shows the value for employers who offer DB plans – ARIA post

(Nov. 27, 2014) Yet another study is showing the benefits for employers in offering a DB plan when it comes to retaining employees, reports Benefits and Pensions Monitor. Research from Towers Watson shows that defined benefit plans in Canada, the U.S. and the UK help keep valued employees on the job, reports The Monitor. Its latest ...more

Employees appreciate an employer who offers retirement plan – ARIA post

(Nov. 27, 2014) An increasing number of studies and reports are demonstrating the value of an occupational pension in maintaining the loyalty of valued employees, meeting a prime objective of employers and their HR departments. Are they an effective tool in stopping employees from wondering if the grass is greener over the road? Writing for Benefits ...more

Investment clout of pension funds attract domestic attention – ARIA post

(Nov. 27, 2014) With Canada’s large pension funds investing in infrastructure and equity opportunities around the globe, efforts are being made to attract more of that capital to Canadian projects, writes Tim Kiladze in the Globe and Mail. “For years, the investment arms of the country’s biggest funds … fought for the right to invest in ...more

Liquidity among the risks to be managed – ARIA post

(Nov. 27, 2014) Pension funds are among the “financial entities” facing liquidity risk, and often many of these entities, including banks and insurance companies, “cannot quantify the liquidity risks to which they are exposed,” writes Jonathan Jacob in Benefits Canada. The only liquidity risk facing a pension fund, he continues, is in the promise of a ...more

Regina pension deal sees benefits reduced going forward – ARIA post

(Nov. 27, 2014) Regina city council is fully onboard with a proposal to resolve the pension dispute between the City and its employees, reports Benefits and Pensions Monitor. Council voted unanimously in favour of the agreement announced last Friday, approving it in principle. The agreement maintains the defined benefit model, with some changes, and includes a ...more

Irish workers with DC plans face diminished retirement income – ARIA post

(Nov. 26, 2014) Irish workers with a defined contribution retirement scheme face an average retirement income of just 22 per cent of current income, reports The Irish Independent. Research by pensions consultants Mercer indicates that someone who retires earning €60,000 annually will likely have retirement income from their DC plan of €13,200, reports The Independent. The study involved ...more

Hamilton steelworkers eye court process warily – ARIA post

(Nov. 26, 2014) Following court approval of a process by U.S. Steel to determine how much is owed by its pension plans and how short those plans are, Hamilton steelworkers fear it will all lead to reduced benefits, reports the Hamilton Spectator. The steelmaker got approval to engage an actuary to determine the status of its ...more

Quebec municipal workers step up pension protests – ARIA post

(Nov. 26, 2014) Protests against proposed changes to Quebec’s pension system spread to rinks and libraries Wednesday, as some municipal workers staged a one-day work stoppage, reports the Montreal Gazette. The stoppage meant that scheduled hockey games were to be cancelled in Côte-St-Luc. Municipal facilities were to remain closed, and hundreds of city of Montreal professional workers ...more

Planning to continue working does not a retirement plan make – ARIA post

(Nov. 25, 2014) With so many people having so little in the way of retirement savings, many say they simply intend to continue working during the traditional retirement years. That approach can hardly be called a retirement plan, Benefits and Pensions Monitor reports Peter Drake, vice-president, retirement and economic solutions, at Fidelity Investments, saying at a recent ...more

Survey says: DB still the best – ARIA post

(Nov. 25, 2014) Public sector defined benefit pension plan administrators are increasingly confident in their ability to sustain their plans and address future retirement needs, according to a new study by the National Conference on Public Employee Retirement Systems (NCPERS). The 2014 NCPERS Public Retirement Systems Study also shows the plans have a healthy long-term investment future. “Once ...more

The Caisse invests in Seattle office properties – ARIA post

(Nov. 25, 2014) Two Seattle office developments are now part of the Caisse de dépôt et placement du Québec, following a $316.3 million purchase by its real estate arm Ivanhoé Cambridge and its partner, Callahan Capital Properties, reports Benefits Canada. They bought 100 per cent interest in the two adjoining office properties in downtown Seattle, reports Benefits Canada. “1111 ...more

Queen’s Park seeks ORPP feedback – ARIA post

(Nov. 25, 2014) Ontario’s new pension plan is moving into the feedback stage, with the government asking employers and employees for input, reports Benefits Canada. The province intends to have the Ontario Retirement Pension Plan (ORPP) in place in 2017. The introduction, reports Benefits Canada, will coincide with “the expected reductions in employment insurance premiums, which ...more

Regina council to consider pension deal – ARIA post

(Nov. 24, 2014) A deal resolving the pension dispute in Regina is expected to reach city council Monday, which will be asked to support it in principle, reports the Regina Leader Post. The result of a 14-hour negotiation on Friday, the agreement over the Regina Civic Pension Plan will see the defined benefit model maintained, but with ...more

Firefighters demonstrate in support of fired/suspended colleagues – ARIA post

(Nov. 24, 2014) Hundreds of noisy firefighters demonstrated outside the Montreal Fire Department, protesting the firing and suspension of some of their colleagues in relation to a disturbance last August at Montreal City Hall, reports Global News. The August demonstration involved firefighters, and others, protesting the province’s Bill 3, which would “require firefighters to pay more into ...more

CPPIB invests in ‘compelling’ Chinese sector – ARIA post

(Nov. 24, 2014) The Canada Pension Plan Investment Board (CPPIB) is upping its stake in China’s logistics property market, reports the Australian Business Review. The board and its partner, logistics property developer Goodman Group, are investing $US500 million “in equity into their joint venture in China,” reports The Review, with $400 million coming from the CPPIB. It ...more

Judge rules Illinois pension changes unconstitutional – ARIA post

(Nov. 24, 2014) An Illinois judge has ruled that the state’s overhaul of its pension system is unconstitutional because it violates a provision that makes pensions “an enforceable contractual relationship,” reports the New York Times. Changes enacted last December reduced some benefits, and Judge John W. Belz of the Sangamon County Circuit Court found that in conflict with ...more

Smaller plans struggle with ‘outdated’ investment structure – ARIA post

(Nov. 21, 2014) A new paper from Russell Investments Canada Ltd. advises that many of Canada’s smaller pension plans are stuck using “outdated investing methods,” reports Benefits Canada. The paper points to a “clear gap in resources and investment process” between smaller plans with less than $10 billion in assets, and the country’s “mega” plans, “which ...more

DC trustees struggle with compliance rules – ARIA post

(Nov. 21, 2014) Trustees of British defined contribution plans are missing the mark in terms of expectations for “governance, administration and communications,” reports The Actuary. Reporting on an Towers Watson analysis of regulatory compliance levels, The Actuary said that while trustees are meeting guidelines for a number of areas, “many trustees are failing to meet guidelines for ...more

DB plans rebound after decade to turmoil – ARIA post

(Nov. 21, 2014) After a decade of economic turmoil, multi-employer defined benefit plans are bouncing back, reports Benefits and Pensions Monitor. Reporting on new data from the International Foundation of Employee Benefit Plans (IFEBP) and Horizon Actuarial Services, LLC, The Monitor says that investment returns were unstable over the past decade due to a number of pressures, including ...more

Global investors balk at ‘excessive’ fees – ARIA post

(Nov. 21, 2014) Private-equity managers took it on the chin from pension fund managers “from the Netherlands to Canada” for charging excessive fees, writes Simon Clark in the Washington Post. Th managers, looking for new investment potential “lambasted” the private-equity executives at a meeting in Paris, writes Clark. Ruulke Bagijn, chief investment officer for private markets at ...more