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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

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

In The Headlines
Quebec premier says he won’t back down – ARIA post

(Oct. 20, 2014) Despite ongoing and vocal protests by unions and civic employees, Quebec Premier Philippe Couillard says he isn’t going to back away from austerity measures, including those aimed at pension plans, reports the Globe and Mail. He told party members at a meeting in Trois-Rivieres that his government won’t be “distracted by those opposed ...more

Current trends suggest higher liabilities – ARIA post

(Oct. 20, 2014) An advisory from Towers Watson suggests pension plans may be headed for rougher waters after a period of smooth sailing, reports www.bpmmagazine.com. The warnings come from record low bond yields and falling stock markets, and means that plans “are on course to revisit some of the financial anxiety of the recent past,” according to ...more

Financial literacy campaign reaches out for support – ARIA post

(Oct. 20, 2014) The federal government’s initiative to bolster the financial literacy of Canadians is looking to involve organizations offering such efforts, reports www.bpmmagazine.com. The campaign’s first goal is to strengthen the overall financial literacy of Canada’s seniors. Jane Rooney, appointed Canada’s financial literacy leader, is co-ordinating “its implementation as part of an overall national strategy for ...more

CPPIB steps up interest in insurer – ARIA post

(Oct. 17, 2014) A Canada Pension Plan Investment Board (CPPIB) owned insurer is buying the Canadian arm of Netherlands based insurance company Aegon N.V., reports the Globe and Mail. Purchase price is $600-million, reports The Globe. The business, primarily consisting “of an individual life insurance provider called Transamerica Life Canada, will be wrapped into U.S. insurance and reinsurance ...more

Lack of retirement income and ageism leave seniors behind – ARIA post

(Oct. 17, 2014) On Oct. 1, Canadians joined with citizens of other nations to mark the United Nations’ International Day of the Older Person, with the theme of ‘Leaving No one Behind: Promoting a Society for All.’ Yet, in Canada, writes Isobel MacKenzie in the Prince George Citizen, Canadian seniors are being left behind by ageism and ...more

Protesters against Quebec’s pension changes ‘not broken’ – ARIA post

(Oct. 17, 2014) Municipal workers in Quebec continue to battle the province’s pension proposals, gathering in Montreal to reaffirm their resolve to stop them, reports the Montreal Gazette. Even though their movement has been hampered by more than 100 arrests, faces an uphill climb in the “court of public opinion” as well as a government that ...more

Existing savings programs offer more options and flexibility than PRPPs: Banerjee – ARIA post

(Oct. 17, 2014) Nova Scotia is introducing pooled registered pension plans (PRPPs). Quebec has launched its own version, the Voluntary Savings Retirement Plan (VRSP), and a number of provinces have their own plans in the works. And four years after they were introduced by the federal government, and two after they were approved by Ottawa, five ...more

Canadians risk adverse when it comes to retirement savings – ARIA post

(Oct. 16, 2014) Canadians are missing out on opportunities to increase their retirement savings according to new research, reports Benefits and Pensions Monitor. The Manulife Investor Sentiment Index finds that most Canadians are risk adverse when it comes to saving and investing, and opportunities missed include maximizing employer contributions from a workplace retirement plan, reports The Monitor. “When it ...more

DB produces up to 77 per cent more income than DC: Brown – ARIA post

(Oct. 16, 2014) It’s called pension  envy and generally references feelings of resentment among Canadians without an occupational pension towards those in the public sector who have one. More than 60 per cent of Canadians do not have an occupational pension, and in the private sector the number is 76 per cent, writes Adam Mayers in ...more

Nova Scotia plans to introduce PRPPs – ARIA post

(Oct. 16, 2014) PRPPs are coming to Nova Scotia the province’s finance minister announced this week, reports Benefits Canada. Finance and Treasury Board Minister Diana Whalen said legislative changes will be made to allow residents to access pooled registered pension plans (PRPPs), reports Benefits Canada. “All Nova Scotians deserve a pension option that allows them to retire with ...more

Harvard prof says savers need a nudge – ARIA post

(Oct. 15, 2014) A proven benefit of the traditional pension plan is the internal management and investment talent that effectively handles assets. A proven shortfall of the defined contribution method is the placing of decisions on the shoulders of investors with low levels of financial literacy. A number of initiatives are underway to address this deficiency, ...more

CPPIB revs up bid for ‘Main Street of the Midwest’ – ARIA post

(Oct. 15, 2014) Large global pension  funds aren’t letting the failure of one of the biggest privatizations of U.S. infrastructure deter them from a stretch of highway investment, reports the Globe and Mail. Funds are forming consortiums to bid “for the operator of an Indiana toll road that filed for bankruptcy last month, according to people ...more

The Caisse casts an eye towards Mexico – ARIA post

(Oct. 15, 2014) The Caisse de dépôt et placement du Québec is reportedly set to unveil a significant Mexican investment, reports the Globe and Mail. This follows “an initial $100-million investment in real estate,” reports The Globe. According to one source, The Globe reports, the Caisse and a Mexican institutional investor plan to create a joint fund to ...more

Canada sinks lower on pension index – ARIA post

(Oct. 15, 2014) Is the pension crisis in Canada beginning to ease? Not according to the latest Mercer Global Pension Index, which notes that Canada has slipped from sixth to seventh place, reports www.bpmmagazine.com. According to the report, Denmark retains the only ‘world class’ system, with the much vaunted Dutch approach dropping to third. Finland, in fourth ...more

AIMCo on track with UK rail company – ARIA post

(Oct. 14, 2014) The Alberta Investment Management Corporation (AIMCo) is investing in United Kingdom rail, partnering with Allianz Capital Partners and Hastings Funds Management to purchase Porterbrook Rail Finance Ltd., reports Benefits Canada. The rail company is one of the “three major rolling-stock leasing companies” in the UK, reports Benefits Canada. The purchase price was not disclosed. “We are delighted ...more

Wynne’s ORPP needs the support of Trudeau’s Liberals – ARIA post

(Oct. 14, 2014) Earlier this month Ontario Premier Kathleen Wynne said she thought the federal Liberals would be supportive of the Ontario Retirement Pension Plan (ORPP) if they formed a government. However, writes Martin Cohn in the Toronto Star, Liberal Leader Justin Trudeau “remains hard to read” on the issue of inadequate retirement income that is ...more

DB helps employers recruit and retain: report – ARIA post

(Oct. 14, 2014) Does the traditional pension model benefit employers as well as employees? The answer, according to a growing body of evidence, is yes. The defined benefit approach provides employees with a lifetime stream of steady and secure income, helping to make retirement less of a risky time. A DB plan also benefits employers by ...more

Keep talking up importance of retirement income – ARIA post

(Oct. 14, 2014) Writing for www.rabble.ca about the importance of talking up the value of pensions and adequate retirement income, Barbara Jones says doing so is the responsibility of people at or near retirement age. However, talking is one thing, getting people to listen is another. “How many times have we talked to our children, grandchildren, friends ...more

Act now to create sustainable system: Morneau – ARIA post

(Oct. 10, 2014) Attendees at the National Summit on pension and retirement issues heard from a number of speakers, including Bill Morneau, executive chair of Morneau Shepell, and Fred Vetese, chief actuary at the firm, the largest  in Canada offering human resources consulting and outsourcing services. They provided insight and analysis about the current pension landscape in ...more

Wynne the ‘Tommy Douglas’ of retirement security, says CUPE’s Moist – ARIA post

(Oct. 10. 2014) According to CUPE national president Paul Moist, Ontario Premier Kathleen Wynne is the “Tommy Douglas of retirement security,” writes John Michael McGrath for QP Briefing. As premier of Saskatchewan, Douglas brought in medicare, the first in any Canadian jurisdiction. His initiative was adopted by the federal government, spreading the concept across the country. Wynne’s Liberal ...more