DC Pensions - Prudent Risk Management Pays Off

With the amount of commentary related to plan sponsor fiduciary risks associated with Defined Contribution plans one would think the logical solution is just to steer clear of them. Fortunately, plan members have demonstrated that the lifetime value of this benefit is well worth the business resources required to ensure the risks are managed prudently. The...

Pension plans may be underutilizing the services of their consultant

Pension committees are typically composed of management staff with core responsibilities which have nothing to do with pension governance and investment monitoring. For this reason, it is not unusual for pension committees to engage third party consultants to periodically facilitate investment reviews. One could equate this to periodically getting different...

Proposed changes for Ontario Pension Plans – Bill 236

The Pension Benefits Amendment Act, 2009(Bill 236) which received first reading in the Legislative Assembly of Ontario on December 9, 2009 proposes a number of changes that will affect both plan sponsors and plan members of pension plans. The proposed changes include: •Immediate vesting upon joining plan •Elimination of partial plan windups •Increase in...

FSCO Annual Information Returns - there is a better way

As we know, FSCO is charged with regulatory responsibilities relating to pension plans in Ontario. They are also "charged" with charging for costs associated with these services - the most recent posted budget amount for 2007-2008 reflects billings in excess of 13 million for their services. As plan sponsors and plan administrators, you are familiar with...

Saskatchewan Government and General Employees Union hikes defined benefit contribution rate to 54% of wages!

Here is an interesting story out of Saskatchewan that offers an extreme example of the risks of defined benefit pension plans in the current environment. The Saskatchewan Government and General Employees Union (SGEU) has 35 employees and a defined benefit pension plan. On January 14, 2010 the SGEU planned to increase the employee contribution to the pension...

Retirement Plan Administration Updates for 2010

The 2010 limit for tax-deferred contributions to a registered pension plan is $22,450, which is equivalent to an income of $124,722.22. Persons below this limit will continue to be restricted to 18% of earnings. Click here for a table showing the 2010 limits for various retirement plan types. Click here for the 2010 limits for the Canada/Quebec Pension...

Proposed Pension Reforms in Ontario

On December 9, 2009, the Government of Ontario tabled legislation proposing changes to the provincial system governing private pensions. Bill 236 stems from recommendations of the 2008 Ontario Expert Commission on Pensions. The reforms in the Bill include: •Clarifying the benefits of plan members affect by lay-offs and eliminating partial wind-ups •...

Kerry Case highlights Pension Plan Governance

The recent Supreme Court of Canada decision in the Kerry Case highlights the importance of sound pension plan governance practices. According to Simon Archer of Koskie Minsky in the article Nolan v. Kerry and its Place in Pension Deliberation “Although Kerry (and others in the line of cases) will not create or erode pension plan provision in Canada, they do...

Private & Public Real Estate usage in Pension Plans

What is the right private / public real estate allocation for pension plans and other institutional investors in today's market.

Federal Announcement on Pensions

Income Tax Act, Defined Benefit, Surplus, 10%, OSFI

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