National Investment Roundtable Straight talk on the issues that concern
Canadian defined benefit pension plan sponsors Spring 2016
TORONTO, May 15, 2017 - Building on a strong 2016 annual return of 6.8 per cent,
Canadian defined benefit pension plans upheld the positive growth trend with Q1 2017 returns of 2.9 per cent, according to the $ 650 billion RBC Investor & Treasury Services All Plan Universe, the industry's most comprehensive universe of Canadian pension plans.
2017.05.15 Canadian pension returns post four consecutive quarters of gains: RBC Investor & Treasury Services Building on a strong 2016 annual return of 6.8 per cent,
Canadian defined benefit pension plans upheld the positive growth trend with Q1 2017 returns of 2.9 per cent...
Building on a strong 2016 annual return of 6.8 per cent,
Canadian defined benefit pension plans upheld the positive growth trend with Q1 2017 returns of 2.9 per cent...
According to a recent report from Aon Hewitt, the median solvency ratio of
Canadian defined benefit pension plans hit a new post-recession high in the recently ended third quarter.
A recent report by Vertias Research on the state of
Canadian defined benefit pension plans included a list of companies with pensions portfolios that are the most affected by low interest rates and market volatility.
Not exact matches
Late last year Toyota announced that beginning Jan. 1 new
Canadian hires would be enrolled in a
defined - contribution
pension plan, not the more generous
defined -
benefit plan enjoyed by current full - time employees.
Saunders, the president of the Vancouver and District Labour Council, says that
Canadian workers and their
pensions are more exposed to risk during market trouble because of the successful campaign over the past decades to move from
defined benefit pensions, which guarantee a certain monthly amount when you retire, to
defined contribution
plans, promoted by market enthusiasts.
«Twenty years ago,» said Saunders, «60 per cent of
Canadian private
pension plans were
defined benefit.
The «All
Plan Universe» currently tracks the performance and asset allocation of over $ 650 billion in assets under management across
Canadian defined benefit (DB)
pension plans, and is a widely - recognized performance benchmark indicator.
Within the $ 520 billion RBC Investor & Treasury Services All
Plan universe — the industry's most comprehensive universe of
Canadian pension plans —
defined benefit (DB)
pension assets returned 4.8 per cent during the three months ending March 31, 2014, bringing 12 month totals to 14.8 per cent.
According to the $ 520 billion RBC Investor & Treasury Services All
Plan universe — the industry's most comprehensive universe of
Canadian pension plans —
defined benefit (DB)
pension plans continued to generate positive returns for a sixth consecutive quarter, returning 2.7 per cent during the fourth quarter 2014 and bringing the annual return to 11.9 per cent.
Few
Canadians outside the public sector enjoy good
defined benefit pensions anymore, but many will by then have significant amounts in more modest employer - sponsored
plans, or RRSPs and TFSAs.
While
defined contribution
plans are becoming the norm in the private sector, a fortunate minority of
Canadians still enjoy what's known as a
defined benefit pension plan.
I wonder if
Canadian Pension Plans (
defined contribution &
defined benefit) as well as RRSP's have anything like this...
While the amount we're able to accumulate for retirement on tax - free basis in an RRSP is supposed to be equivalent to the amount of
pension benefits that can be accrued under a
defined benefit pension plan, the reality is that the «majority of
Canadians who save for retirement in (RRSPs are) at a major disadvantage,» says a new report out this week from the C.D. Howe Institute.
Roughly 32 % of
Canadians have a workplace
pension plan, of which a smaller percentage have a
defined benefit pension plan (versus
defined contribution) which guarantees certain payouts in retirement.
Consider a typical
Canadian couple who earned average incomes during their working lives and don't have a
defined benefit pension plan.
This is doubly so because, as Machin also pointed out, the general climate of retirement pessimism is exasperated by the fact «private sector
defined benefit pension plans have virtually disappeared from the
Canadian retirement landscape.»
DBRS, the
Canadian - owned bond rating agency, has seen the numbers following an investigation of 461
defined benefit pension plans in Canada, the U.S., Japan and Europe and is mightily concerned.