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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

Auto-enrollment, low fees and effective oversight would strengthen PRPP model: Ed Waitzer

Auto-enrollment, low fees and effective oversight would strengthen PRPP model: Ed Waitzer If it looks like a duck, walks like a duck and quacks like a duck, chances are it’s a duck. Similarly, if it works like an RRSP, it’s more than likely an RRSP, no matter how it’s packaged. Even though it contains the word pension in its name, critics say the federal government’s Pooled Registered Pension ...more

Will our working careers continue to age 70, or even beyond?

Will our working careers continue to age 70, or even beyond? Canadians old enough to remember predictions of the future that included flying cars, personal robots to do the household chores and an abundance of leisure time may well wonder when those things might come to pass. Cars aren’t flying anywhere on traffic-clogged roads, robots do exist but they aren’t personal, and people seem busier than ever ...more

CPP the best way to fix retirement income gap for middle-income Canadians: Stanford

CPP the best way to fix retirement income gap for middle-income Canadians: Stanford The sorry state of retirement preparedness in Canada can be told by the related statistics, such the one that reveals more than 60 per cent of Canadians don’t have an occupational pension of any type. They are the ones who will have to rely on personal savings financial experts say are too low and government programs ...more

Looming retirement income crisis requires attention: Teachers’ Jim Leech

Looming retirement income crisis requires attention: Teachers’ Jim Leech Frustrated by the direction the debate in Canada on pension reform was taking, Jim Leech, a man who knows a thing or two about pensions, decided the best way to influence the conversation was to put thoughts to paper. And so was born the book, The Third Rail: Confronting Our Pension Failures, co-written by senior Globe ...more

PEI’s Sheridan says improving the CPP is the right thing to do for younger Canadians

PEI’s Sheridan says improving the CPP is the right thing to do for younger Canadians Enhancing the Canada Pension Plan (CPP) to deliver better retirement income security represents good public and social policy, and also economic benefits that even those philosophically opposed to the move should be able to support, maintains one of main proponents of an improved CPP. Without changes to the CPP, Canadians lacking adequate retirement income will turn ...more

CARP’s Eng concerned about rise in senior poverty, supports enhanced CPP

CARP’s Eng concerned about rise in senior poverty, supports enhanced CPP The provision of adequate retirement income, mostly from defined benefit pension plans, has seen senior poverty rates decline since pensions were first introduced generations ago. However, with the collapse of the traditional pension, mostly in the private sector, retirement experts are warning that poverty rates among seniors will spike, reversing those gains. In fact, that’s already happening, ...more

Life after work shaping up to be a different retirement experience

Life after work shaping up to be a different retirement experience Life after work is shaping up to be quite different for a significant number of boomers at or near retirement’s door, than for their parents and grandparents, a growing number of studies are confirming. One of the latest, The Future of Retirement: Life After Work?, from the HSBC, finds that the reality of the pending retirement ...more

Pension plans’ investment potential benefits all Canadians: Janet Ecker

Pension plans’ investment potential benefits all Canadians: Janet Ecker (Oct. 24, 2013) When discussion falls on Canada’s retirement system, the focus is usually on how many Canadians lack an occupational pension and how that factor is driving the conversation about possible solutions, including enhancing the Canada Pension Plan (CPP). More than 60 per cent of Canadians don’t have a workplace pension, and financial experts say ...more

Financial literacy help on the way for boomers

Financial literacy help on the way for boomers (Oct. 17, 2013) The boomers are coming, the boomers are coming. And when they arrive, the retirement landscape may never look the same again. They are arriving carrying bags largely unpacked with retirement preparedness. Advancing age and the sweep of time are pushing them to unfamiliar shores, and to what financial experts are calling a pending ...more

CPP not a payroll tax, it’s a pension plan: CPA

CPP not a payroll tax, it’s a pension plan: CPA (Oct. 11, 2013) As traditional notions of retirement continue to drift out of reach for millions of Canadians, payroll professionals across the GTA are in high schools with a message to students about to embark on their first foray into the working world. “We are connected with a group of Canadian Payroll Association (CPA) volunteers who ...more

In The Headlines
Ontario pension plan should be as much like the CPP as possible: Murray Gold – ARIA post

(April 23, 2014) Canada’s pension system was originally designed to replace about 70 per cent of pre-retirement income, writes pension expert Murray Gold in the Toronto Star. But for a number of reasons, the formula used to achieve that ratio is failing, resulting in warnings that millions of Canadians simply won’t have adequate retirement income. The traditional ...more

Critics decry Alberta’s proposed pension changes – ARIA post

(April 23, 2014) Critics of the Alberta government’s pension proposals charge the province’s public sector pension plans are being gutted before being passed to a joint-sponsorship model, reports the Edmonton Journal. As Alberta MLAs begin deliberations on changes to the province’s four public pension plans, union leaders and opposition critics maintain the changes will gut the ...more

CPPIB makes another significant investment – ARIA post

(April 22, 2014) The Boston Consulting Group’s study on Canada’s top 10 pension funds highlighted the economic and retirement benefits produced by large, professionally managed funds. The investment arm of one of those funds, the Canada Pension Plan, announced this week that is has completed a secondary transaction related to JW Childs Equity Partners III, investing US$477 million ...more

New direction includes better retirement prospects – ARIA post

(April 22, 2014) With more than 60 per cent of Canadians not having access to an occupational pension, alarms are being raised about the societal impact of millions of older Canadians not having adequate retirement income. Ahead of the next federal election, the Canadian Council of Chief Executives is “working hard to make its agenda items ...more

NB teachers negotiate revisions to government’s pension proposal – ARIA post

(April 22, 2014) The new pension deal between the government of New Brunswick and the province’s teachers is being called a hybrid of the shared risk model originally proposed by the government, reports CBC News. Teachers will have to work longer before being able to retire, and those already retired may not always get cost-of-living increases, ...more

Lack of pensions means longer working lives – ARIA post

(April 17, 2014) Canadians old enough to remember a time without cell phones, bank machines, the internet, and cable television might recall predications of what people would do in the dawning age of technology that would not only extend life, but make it easier. Futurists imagined flying cars, personal robots, and lots of leisure time. What they ...more

Low rates force individual investors into riskier options – ARIA post

(April 17, 2014) Depending on your financial goals, low interest rates can be good or bad. If you are a homeowner with a mortgage, low rates are helpful. If you have investments upon which retirement income depends, they are not. Low interest rates seem like they will be around for some time, reports CBC News, with ...more

Alaska legislators regret move away from DB – ARIA post

(April 16, 2014) Switching from a defined benefit pension plan to a defined contribution savings scheme hasn’t turned out to be the panacea for Alaska’s unfunded pension liabilities that state legislators had hoped it would be, reports the Alaska Dispatch. In fact, liabilities have gotten larger since the move. What once was a debt of $5.7 ...more

Pensions drive economic activity – ARIA post

(April 16, 2014) Opponents of public sector defined benefit pension plans ignore the societal and economic benefits these plans produce, writes Don Ash, executive director of the Newfoundland and Labrador Teachers’ Association, in The Telegram. Pensions aren’t only about benefits paid to retirees, they are also about the money those retirees continue to spend, with significant ...more

Transferring pension funds ‘difficult and risky’ financial move – ARIA post

(April 15, 2014) It’s not uncommon for clients to ask financial advisors if they should leave their retirement savings in a pension plan or withdraw them and invest on their own, reports the Globe and Mail. However, getting a straight answer to that question proved more difficult than might be expected, reports The Globe. Deciding what ...more

Longevity risks need management strategy – ARIA post

(April 15, 2014) Longer life comes with some obvious benefits, but also some difficult retirement choices, says Moshe Milevsky, executive director of the Individual Finance and Insurance Decision Centre. To highlight the reality of what is being called longevity risk, Milevsky pointed to Australia’s population demographics during a recent MLC Adviser Roadshow event in Sydney, reports Professional Planner. Australia ...more

Bankers welcome Financial Literacy Leader – ARIA post

(April 15, 2014) The appointment of Jane Rooney as Canada’s new Financial Literacy Leader was welcomed by the Canadian Bankers Association, reports Market Wired. The announcement was made by Minister of State (Finance) Kevin Sorenson as part of the federal government’s commitment to financial literacy. Terry Campbell, the association’s president, said Rooney brings sound qualifications to the position. “A ...more

Australia ponders retirement age of 70 – ARIA post

(April 14, 2014) If you enjoy working and don’t consider retirement to be all that interesting, then you might want to consider moving to Australia which could soon be home to some of the oldest workers on the planet. The Australian government is considering raising the retirement age to 70, reports www.watoday.com. If it actually does ...more

Teachers said to be looking at Telesat – ARIA post

(April 14, 2014) The Ontario Teachers’ Pension Plan seems ready to purchase Loral Space & Communications Inc.’s Telesat Holdings Inc. for about $7 billion, reports The Financial Post. The purchase would include debt. The purchase would be a two-step process, reports The Post. First, buying publicly traded Loral, which owns 63 per cent of the company, and buying the rest from ...more

Consensus emerges on retirement income crisis – ARIA post

(April 14, 2014) The tea leaves have been read and consensus about what they say has largely been reached: Canada is headed towards a retirement crisis. Indeed, with the first wave of baby boomers already crashing onto retirement’s shores, many financial experts say it is already here. And as warning bells grow increasingly louder, steps have ...more

Pension plans a source of infrastructure revenue – ARIA post

(April 11, 2014) As governments cast about for revenue sources to rebuild deteriorating infrastructure, they needn’t look very far, writes Michael Fenn for QPbriefing. Pension funds are looking to invest in infrastructure projects, “in reliable jurisdictions, like Ontario.” “A new framework for asset management and reinvestment based on the principle of asset-recycling would allow increased investments in ...more

Protect retirement income against inflation – ARIA post

(April 11, 2014) As governments spend money to drive the economy, the value of money is eroding and that has an impact of retirement savings, writes Robert Baillieul at The Motley Fool. And, he continues, there is only one way investors can protect their money: inflation-proof assets. Inflation, he writes, stems from the rise in prices of ...more

Men anxious about loss of usefulness in retirement – ARIA post

(April 11, 2014) Old habits, it seems, really do die hard. And that includes the habit of working, reports eastidahonews.com. For a good many male boomers, the prospect of retiring after a long working life is frightening, according to Yujie Zhan, assistant professor at Canada’s Wilfrid Laurier University. Rather than looking at retirement as a turning of the ...more

CPPIB reaps $1.5 billion from sale of Gates Corp. – ARIA post

(April 10, 2014) The Canada Pension Plan Investment Board stands to earn $1.5 billion in net proceeds from the sale of industrial products maker Gates Corp., reports the Brandon Sun. The Sun reports that private equity firm The Blackstone Group is buying Gates Corp. for $5.4 billion. The CPPIB and private equity firm Onex Corp. say the sale ...more

OPTrust earns 11.7 investment returns – ARIA post

(April 10, 2014) Yet another Canadian pension fund is reporting healthy 2013 investment returns, with OPTrust saying it earned 11.7 per cent last year, up from 10.1 per cent the year earlier, reports pionline.com. OPTrust manages assets of the Ontario Public Service Employees Union Pension Plan. By the end of the year, total assets were C$16 billion, ...more