Daily News Alerts - Benefits and Pensions Monitor
To ensure that you see the latest news Refresh (F5 Key) the browser page.
You can register for our Daily News Alerts here.
Last fall, the Ontario Pension Commission conducted public hearings across Ontario. To view submissions received by the commission, please click here.
Friday, May 9, 2008
Others Consider Retiree Trusts
The creation of benefit trusts for autoworker retirees and reports that other employers are considering similar moves may signal a fundamental change in the employer-provided healthcare system, says an Alliance for Health Reform report. It suggested that other large employers are thinking about setting up voluntary employee beneficiary associations, a step taken by General Motors, Ford, and Chrysler to provide health and benefits for retirees in exchange for company contributions. "Only time will tell whether this movement away from employer-sponsored coverage to new models of care will be unique to the auto workers, or is a sign that the nature of worker coverage is fundamentally changing," it says.
Cancer Incidents Rising Fastest
Incidents of cancer are among the fastest rising benefit claims facing employers with disability management programs, says Rob Matthews, of Medavie Blue Cross. Speaking at the Toronto Area Chapter of the International Society of Certified Employee Benefit Specialists Group Benefits seminar, he said this is a national trend impacting all industries. He noted that, in general, the number of claims is going up. He suggested that the aging workforce and better medical care may be reasons for the increase. Mental/nervous disorders claims are still the most prevalent, accounting for about 20 per cent of all disability claims.
U.S. Clarifies Fiduciary Liability Protections
The U.S. Department of Labor has released amendments to the Qualified Default Investment Alternative regulations which generally clarified the fiduciary liability protections for investment in certain types of funds when a participant fails to provide investment instructions, says Osler, Hoskin & Harcourt LLP. The corrections make three changes to the regulations. They include expanding the list of persons who may manage a QDIA to include a committee of the plan sponsor if certain requirements are met; clarification that ‘round-trip’ restrictions (restrictions on investing in a QDIA after previously transferring out of it) are not prohibited; and clarification of the types of stable value funds that are ‘grandfathered.’
Equity Markets Rebound
Equity markets rebounded strongly in April, ending a five-month period of negative returns, says Towers Perrin ‘Capital Market Update – April 2008.’ The favourable asset experience was somewhat offset by results on the liability side as long corporate bond yields dropped slightly for the month. At the bottom line, the funded ratio for its benchmark plan increased by 1.2 percentage points to 89.9 per cent. However, the funded ratio of U.S. plans remains down 2.8 per cent on a year-to-date basis.
Wellness Challenge Pays Off
IKON Canada’s ‘Wellness Challenge’ to officially start the New Year is showing results. The goal was to get employees to do some type of healthy activity (smoking cessation, incorporating nutritious foods, or exercising at least 30 minutes per day at least three days per week). After the first quarter of the year, it found 74 per cent had increased physical activity; 69 per cent made healthy changes to eating habits; and 48 per cent lost weight. The total weight loss provided by those who completed the survey was 2,859 pounds.
Standard Life Marks Anniversary
This year marks Standard Life’s 175th anniversary in Canada. To commemorate this event, Standard Life is creating a $1.75 million endowment fund to enhance its current community investment program. Standard Life was the first life insurance company to transact business in Canada and, from its origins in life insurance in 1833, the company has broadened the scope of its operations to offer a full range of asset managing services for retirement, investment, and protection.
Hamilton Speaking At ACPM
‘DB Plans: Terminal or Critical?’ will be one session at the ACPM ‘2008 National Conference.’ Theme of the conference is ‘Climbing the Rocky Road.’ The DB session will feature Malcolm Hamilton, partner, Mercer (Canada) Ltd.; Christopher A. Brown, Alberta co-chair, Joint Expert Panel on Pension Standards; and Kathryn Bush, of the Ontario Expert Commission on Pensions. They will discuss the key suggestions made to the committees studying pensions in Alberta, British Columbia, and Ontario. The conference takes place September 16 to 19 in Lake Louise, AB. For more information, visit http://www.acpm-acarr.com/
---------------------------------------------------------
Thursday, May 8, 2008
DC Potential Needs Examination
The Association of Canadian Pension Management (ACPM) says there is a need for a comprehensive and balanced analysis of retirement saving plans in Canada. Its ‘Delivering the Potential of DC Retirement Savings Plans’ report says it is becoming apparent that member-directed retirement savings plans will play a larger role in the Canadian retirement income system in the future. However, there is concern in the industry about the ability of these plans to meet the retirement savings needs of Canadians. The ACPM hopes its report will become the starting point for a discussion among retirement system stakeholders that will end with fair and practical recommendations for improvements to retirement savings plans in Canada.
Guidelines Set For Pension Regulators
The OECD countries and the International Organization of Pension Supervisors have agreed on new guidelines to help pensions regulators and supervisors improve the way pension entities – such as pension fund managers or trustees – are managed in order to boost their financial security and performance. The guidelines, part of a broader Organization for Economic Co-operation and Development effort to strengthen public confidence in the pension system, set out minimum requirements that pension entities should meet when applying for a licence to begin operating. Issues covered by the guidelines include minimum requirements related to the pension entities’ starting capital, funding policy, and risk management mechanisms, as well as their governance structure and investment policy. They also outline the circumstances in which a licence to operate may be withdrawn. The licensing regime, if fully implemented, would ensure that pension entities upgrade their financial, human, and operational resources to the level necessary to meet the challenges of an increasingly complex financial system.
TFSAs May Complement RRPs
Employers considering adding Tax Free Savings Accounts (TFSA) to replace their retirement plans might want to reconsider, says Ross Gilbert, a pension principal at Morneau Sobeco. Speaking at its TFSA seminar, he said, at best, TFSAs may be complementary to registered retirement plans (RRPs). They do not have the vesting and locking-in provisions, nor can they ensure the money is being accumulated for retirement, as is the case with RPPs. As well, if they are used instead of a retirement plan, the governance requirements do not go away. Employers would still have to satisfy Capital Accumulation Plan guidelines and provide employees with education and financial planning tools.
Investment Return Timing Critical
The timing of investment returns is critically important in the decumulation phase, says Bruce Curwood, of Russell Investments. Speaking at the ACPM Ontario Regional Council’s ‘Capital Accumulation Plans – Can They Meet Your Objectives?’ event on ‘Converting CAP Balances into Retirement Income,’ he said the greatest risk is early in retirement when poor returns can seriously jeopardize future living standards. Downside risk is less bearable because the burden of funding retirement living expenses is on the retirement nest egg and the time horizon is uncertain. For Defined Contribution plan members, it becomes important to provide flexible distribution options to fit each individual situation.
Employees Work To Keep Health Coverage
Older workers without other healthcare insurance options are more likely to defer retirement to stay covered under their employer's plan, says an analysis by Watson Wyatt Worldwide. The analysis found that employees who rely on their employers for healthcare coverage and do not expect to receive employer-provided health benefits in retirement are 16.5 percentage points less likely to retire in any given year than workers with access to healthcare coverage through another source. These sources can include a spouse's health insurance plan or employer-sponsored retiree health insurance.
FlexTrade Connects To Chi-X Canada
FelxTrade Systems, a provider in broker-neutral multi-asset algorithmic trading systems, says its FlexTRADER EMS is now providing full connectivity to Chi-X Canada, a fully-anonymous and low-cost alternative trading system (ATS) offering a continuous auction market in securities listed on the Toronto Stock Exchange. FlexTRADER is a fully customizable, quantitatively enriched equity trading, and execution management system with a global client base including institutional users on the buy-side and sell-side, hedge funds, and investment managers. It can execute pre-defined trading strategies and tactics for lists, as well as single stocks, and offers those engaged in agency trading, index arbitrage, and other proprietary and standard strategies the ability to trade large blocks of equities anonymously while minimizing market impact.
Trustees Get Legislative Update
Governmental policy-makers, employee benefit executives, and industry leaders will present to approximately 225 trustees, administrators, and professional advisers serving multi-employer and public sector benefit plans at this year’s ‘Ottawa Legislative Update.’ Set for May 15 and 16 in Ottawa, ON, this International Foundation of Employee Benefit Plans event will look at current proposed legislation from federal regulators. Key sessions will feature Brian Day, president of the Canadian Medical Association, who will present on national healthcare; and Michael Lynk, associate professor, faculty of law, University of Western Ontario, who will speak on returning to work after retirement. For more information, visit http://www.ifebp.org/pdf/edprog/ottawacdnpssess.pdf
---------------------------------------------------------
Wednesday, May 7, 2008
Employer Can’t Amend Employment Contracts
The Ontario Court of Appeal has found that an employer cannot unilaterally amend the terms of an employee’s contract of employment, says a ‘Blakes Bulletin on Pension & Employee Benefits.’ In Wronko v. Western Inventory Service Ltd., the court found that if an employee refuses to accept an employer’s offer to amend the terms of his or her employment contract and the employer allows the employee to continue working, the terms of the original employment contract remain in force. This decision is significant to any employer who wishes to amend the terms of employment including, for example, amendments to employee benefit and compensation arrangements. Old practices of giving reasonable notice of amendments are no longer sufficient to amend employment contracts.
Active Managers Have Rough Start
New data from the Russell ‘Active Manager Report’ reveals that less than 20 per cent of large cap Canadian equity investment managers beat the benchmark in the first quarter of 2008. That was down from 41 per cent in the fourth quarter of 2007 and was the lowest level since 1999. The median large cap manager’s return of -3.9 per cent lagged the S&P/TSX Composite return of -2.8 per cent. However, after experiencing the worst back-to-back performance since 1999, value managers showed improvement and held up better than growth managers in the first quarter of 2008. In the quarter, 27 per cent of value managers beat the S&P/TSX Composite, which was up from 16 per cent in the fourth quarter. In contrast, 24 per cent of growth managers beat the benchmark in the first quarter down from 53 per cent in the fourth.
Soft Dollars In Limbo
Soft dollar packages are in limbo while the industry waits for Canada’s rules, says Patrick McEntyre,vice-president, ITG. Speaking on ‘Going Hard: The Business Impact from Changing Soft Dollar Practices’ at the ‘4th Annual FPL Canadian Electronic Trading Conference,’ he said there are few to no new users and established users are shutting down or freezing their programs. The lack of activity is due to concern that there will be onerous disclosure requirements in Canada’s regulations. However, he said there is a significant backlog of demand.
Hedge Fund Investors Pessimistic
Hedge fund investors are pessimistic about the year ahead, says a survey by Deutsche Bank. The bank reported that 80 per cent of investors it surveyed are bearish for 2008. However, they are more optimistic for next year, with 40 per cent expecting the global economy to pick up in 2009. They predict that macro, distressed, and equity volatility will be the top performing strategies for 2008. The majority of investors surveyed also plan to increase their allocations to emerging markets, with the Middle East as the predicted top performer amongst all regions.
Compliance Reporting Adds SRI
JPMorgan Investor Services is extending its Compliance Reporting Services product to assist clients in monitoring their Socially Responsible Investment (SRI) restrictions. Its institutional and asset manager clients will now be alerted when their portfolios are nearing or have breached limits that they have set themselves according to environmental, social, and governance (ESG) criteria. The new criteria cover some 50 categories including adult entertainment, gambling, tobacco, weapons, country ties, board diversity, corporate governance, climate change, and faith values.
CC&L Signs On With Omgeo
Connor, Clark & Lunn Financial Group (CC&L) has signed on to Omgeo Central Trade Manager. It will use Omgeo CTM to process domestic and cross-border trades via a single interface across multiple time zones. Omgeo has been serving the Canadian marketplace since its inception in 2001.
Pike Now Global Head
Susan Pike is global head, market products and services, at RBC Dexia Investor Services. She has more than two decades of progressive experience in the investor services industry. Over the past decade, she has advanced through a series of positions of increased responsibility with RBC Dexia and its predecessor organization, most recently as global head, securities lending.
Sun Life CFO In Top 40 Under 40
Rick McKenney, executive vice-president and chief financial officer at Sun Life Financial Inc., is a recipient of ‘Canada's Top 40 Under 40’ for 2007. A national award program, it annually honours 40 Canadians in the private, public, and not-for-profit sectors under the age of 40, the program. Honorees are chosen on five criteria including vision and leadership; innovation and achievement; impact; community involvement and contribution; and strategy for growth. McKenney joined Sun Life Financial in 2006, becoming the youngest-ever appointee to its global executive team.
---------------------------------------------------------
Tuesday, May 6, 2008
DundeeWealth Buys Share Of Aurion
DundeeWealth Inc. is buying 60 per cent of Aurion Capital Management Inc. The majority stake will be acquired in exchange for cash and common shares of DundeeWealth. Aurion employees will retain 40 per cent of the company. The investment in Aurion represents a long-term strategic investment that broadens the wealth management platform at DundeeWealth while, at the same time, supporting its expansion into the institutional market. Aurion is a Toronto-based institutional money manager of equities, real estate, and fixed income. It has more than $4.5 billion in assets under management.
Global Offers True Diversification
Canadian pension plan sponsors need to look beyond the S&P/TSX indices if they want to achieve true diversification, says Ari Levy, vice-president and director at TD Asset Management, at its ‘Annual Sharing of Knowledge Learning Series.’ With resource stocks making up 48 per cent of the S&P/TSXComposite Index, he noted that Canadian plans are already looking outside the country. In 2002, non-domestic equities were just 47 per cent of equity holdings. They represented 58 per cent of equity holdings in 2007. Levy also said while foreign exchange can have an impact, over a 15-year time horizon it becomes less significant. Sponsors with short-term liabilities may, however, want to hedge their currency risk.
Operational Risk To Be Expected
If you live in an earthquake zone, you have to expect earthquakes and the same is true of operational risk, says Tony Peccia, of Citigroup. Speaking at the ‘4th Annual FPL Canadian Electronic Trading Conference’ on reducing operational risk via electronic dealing, he said in many cases it is a small factor that ends up creating significant operational risk. In the case of Citigroup, for example, subprime mortgages made up a small part of its business, but ended up causing a significant loss. Because you can’t really prepare for these types of risks, you have to be ready to recover as soon as possible.
Bermuda Welcomes ‘Team Canada’
A group of leading Canadian hedge fund managers and service providers are getting back to work following a whirlwind trip to Bermuda last week. The objective was to highlight the Canadian investment story and promote awareness of the growing number of hedge funds that Canada now offers. Brendan Caldwell, of Urbana Corp, set a tone of informed debate with a stimulating and off-the-cuff discourse on the art of investing in bourses from Bermuda to Bombay. He outlined how to not only leverage the value of a stock exchange, but specifically how to benefit from all the economic successes in the domestic economy represented by the exchange, be it resources, re-insurance, technology or other local assets. Other presentations came from Canadian fund managers such as Salida Capital and new start-ups including Rosalind Capital, Pan Asset Management, Optimal Models, and DDX. The event was sponsored by BMO Capital Markets, Borden Ladner Gervais LLP, the Bermuda Stock Exchange, the Bermuda International Business Association, and KPMG.
Employers Embrace Flexible Work Arrangements
Employers are embracing flexible work arrangements as a way to meet the needs of a diverse workforce, but most have not structured their programs to maximize the benefits, says Hewitt Associates. Eighty-eight per cent of U.S. employers provide some sort of flexible work arrangement to their employers, up from 77 per cent in 1998. Of the companies which offer flexible work arrangements, almost all (98 per cent) said the benefits of workforce programs match or outweigh the costs associated with implementing them. However, few employers have formal policies and consistent procedures in place to manage their workforce programs. Just more than one quarter indicated they have company-wide, formal written policies and only one-third have a formal employee application process.
Monthly Update Of Pension Plan Commuted Value Interest Rate Assumptions For June
The interest assumptions required to calculate commuted values for an event which occurs in any month up to and including June 2008 are now available at www.an-actual-actuary.com. An Excel spreadsheet on the website contains six worksheets
- · Commuted Values – 2005 Basis
- · Commuted Values – 1993 Basis
- · Marital Breakdown – CSOP 4300 - March 2003
- · Marital Breakdown – CSOP 4300 - March 2003 - ALTERNATE
- · Annuity Proxy for Solvency Calculations for Non-Indexed Pensions
- · Minimum Interest on Employee Required Contributions (including the 12 month average rates)
Samaroo Named Western Canada Retirement Practice Leader
Laura Samaroo is the western Canada office leader for Watson Wyatt Worldwide’s retirement practice. Based in the Vancouver, BC, office, she will provide expertise to clients and prospects on a full spectrum of pension services including CICA and FASB financial reporting, financing, design, mergers and acquisitions, governance, and administration.
---------------------------------------------------------
Monday, May 5, 2008
Credit Crisis Affects U.S. For Another Year
Most CEOs, CIOs, portfolio managers, and analysts expect that the U.S. will be affected by the global credit crisis for at least another year, says a poll of attendees to the ‘61st CFA Institute Annual Conference.’ A third of those polled expect the U.S. recovery will take longer than 18 months. This was in contrast to China, India, Russia, and Brazil, where expectations were for a six- to 12-month recovery. Most attendees surveyed expect that Canada and Hong Kong will take eight to 12 months to recover. The poll also forecasts a difficult environment ahead for the equities market. Most survey respondents predicted that, over the next 10 years, the risk premium for equities over T-bills will be between two and six per cent.
Justice Wants ABCP Hearing Delay
The Ontario Superior Court Justice ruling on the fairness of the restructuring plan for Canada’s third-party asset-backed commercial paper (ABCP) needs more time to review the case. He would like to hold the hearing May 12 and 13. However, to do so, the banks would have to extend the standstill agreement that prevents a meltdown in the market. That agreement is to expire May 9.
January 1 Deadline To Provide Contract List
January 1, 2009, has been set as the date on which every insurer transacting group insurance or administrator of an employee benefit plan must provide the Regie de l'assurance maladie du Quebec (RAMQ) with the full list of their current group insurance contracts or employee benefit plans, says the Hewitt ‘Monitor.’ As well, they must also inform RAMQ of any amendments causing eligible persons covered by a contract or plan to be transferred to the public plan. Fines will be imposed for failure to provide or inform the Regie as required.
Equity Funds Enjoy Strong Returns
Equity-based investment funds enjoyed strong returns in April, says Morningstar Canada.
All but one of the fund indices that track the performance of equity fund categories showed positive returns for the month, with 10 of the indices gaining four per cent or more. This positive performance comes on the heels of a very volatile first quarter that saw practically all of those same indices finish in the red. The best performer in April was the emerging markets equity fund index with a six per cent gain. The second best return in April belonged to the Canadian equity fund index, which gained 5.4 per cent. This was the best monthly return for that fund category since December 2005.
ING Acquiring Citistreet
ING Group has agreed to acquire CitiStreet, the record-keeping business jointly owned by Citigroup Inc. and State Street Corp. CitiStreet provides record-keeping and administrative services, advice programs, and other benefit plan services primarily in the U.S. The combined businesses will give ING $351 billion in assets under management and administration, serving 14 million Defined Contribution plan participants.
Sponsors Would Have To Fully Fund Deficits
Plan sponsors in Newfoundland and Labrador may be required to fully fund any deficits on wind up. A Pension Benefits Act amendment would require any plan sponsor to fully fund the benefits provided under a plan it intends to wind up. The current practice requires a plan sponsor to contribute up to the date of wind up. After that, new deficits identified are not the responsibility of the sponsor. The amendment will be applied to plan terminations which take place after April 1, 2008.
Kapeluck Earns National Award
David Kapeluck is the first recipient of the CPBI National Volunteer of the Year Award. It will be presented May 13 at the CPBI FORUM 2008. Kapeluck is manager, member services, at the Co-operative Superannuation Society Pension Plan. He served on the CPBI Saskatchewan regional council from 1989 until 2007, including terms as secretary, program chair, and chair of the regional council on two occasions. He has also acted as the Saskatchewan representative on the CPBI board of directors for two years (1992-94).
Members Need To Double Contributions
Members of Defined Contribution schemes need to more than double their contributions to ensure an adequate retirement, says the Irish Association of Pension Funds (IAPF). Research presented at its first DC conference revealed the average contribution to a DC scheme totalled 11 per cent, with five per cent from employees and six per cent from employers. It warned contributions should be "more than double this" on average, in order to secure an adequate income in retirement.
Lang Speaks At IMN Event
Amanda Lang, host of BNN's SqueezePlay, will be a featured speaker at IMN's ‘Third Canadian Beneficial Owners' Summit on Securities Lending & Global Custody.’ SqueezePlay is a national program covering business and politics. She is also a columnist for Report on Business. It takes place May 29 and 30 in Toronto, ON. For more information, visit www.imn.org/eej1118
Impact Of Child Health Claims Examined
The Group Insurance Pharmaceutical Committee’s ‘Our Children Today - The Workforce of Tomorrow’ seminar will be held June 5 in Toronto, ON. It will examine the impact of health claims for children where there are disturbing trends already affecting employer costs. Keynote speaker is Kelly Murumets, president and CEO, ParticipACTION. Other speakers include Dr. Bob Dent, director, Weight Management Clinic, The Ottawa Hospital; Karen Kesteris, director of marketing, Green Shield Canada; and Janet Crowe, director of health and wellness, TELUS. For more information, visit www.gipc.ca
Foundations Hold Primer In Canada
The International Foundation of Employee Benefit Plans’ ‘Concepts and Practices of Canadian Benefits for Canadian and U.S. Corporations’ will offer a primer for those new to Canadian benefits. Taking place July14 to 16 in Toronto, ON, it will explore the unique differences and regulations between U.S. and Canadian plans. For more information, visit http://www.ifebp.org/
---------------------------------------------------------
Friday, May 2, 2008
DC Faces Uncertain Future
Defined Contribution pension plans may have already seen their best years, says Morneau Sobeco’s ‘Vision.’ Expectations by both employers and members have been inflated by the economic environment of the past 20 years, but that was the most benign period for DC plans in the 85 or so years for which good statistics on capital markets are available. However, DC participants will probably not be able to retire with as much pension in the next 10 years as they would have enjoyed over the past 10 years. The 10 years after that may be worse again. At some point, the extent of the variability in DC pensions will become an issue and employers will feel the pressure to shore up their DC plans in some fashion. The longer corrective measures are delayed, the more expensive they will be to implement.
Canadian Workers Punch In Even When Sick
The Desjardins Financial Security ‘National Health Survey’ has found 42 per cent of Canadian workers went to work sick or exhausted at least once in 2007. Of these, 29 per cent admitted to working while ill three to five times, 11 per cent from six to 10 times, and 12 per cent admitted to more than 10 times in the last year. The reasons most often mentioned by the respondents for their presenteeism were looming deadlines, preventing workload pile-up, not wanting colleagues to be overloaded, concern about missing work being frowned upon, and simply not being able to miss the income.
Much To Consider Before Changing Retiree Benefits
Traditional retiree benefit plans are becoming unmanageable, thanks to rising accounting costs/liabilities, more downloading of medical costs from governments, and newer medical technologies and innovations. For employers looking to eliminate or make minor changes to their retiree benefits programs, various options and risk factors have to be considered, said Ellen Whelan, Mercer Human Resource Consulting, at a CPBI seminar. Employers must assess the legal, financial, and human capital risks to changes and build communication around notification periods prior to changes. Rather than taking on a ‘payer role’ of plan costs, employers can consider a ‘facilitator role’ which provides access to medical solutions for retirees.
Women Twice As Likely To Suffer Mental Illness
Mental illness, mostly mood disorders such as depression, strikes twice as many women in Canada, says David Goldbloom, senior medical advisor, education and public affairs, at the Centre for Addiction and Mental Health; and professor of psychiatry at the University of Toronto. Speaking on ‘Mental Health in the Workplace: A Measurable Cost’ at the Connex Health ‘6th Annual Employer Forum, he said it is important that employers recognize the symptoms of depression because the cost of mental illness is substantial. In fact, a Treasury Board report said it is the number one cause of disability in the public sector. The leading kind of mental illness is depression which, he said, can be treated. Signs of depression include a lack of productivity, more mistakes in their work, and irritably. Theme of the event was ‘Workplace Health and Productivity Management: Measuring for Success.’
PH&N Acquisition Completed
The Royal Bank of Canada has completed its acquisition of Phillips, Hager & North Investment Management Ltd. (PH&N). The acquisition creates the largest retail mutual fund company in Canada with more than $105 billion in mutual fund assets under management as at March 31, 2008 and one of the largest private client investment counseling businesses in Canada. RBC also becomes one of the top five managers in the Canadian institutional market for Defined Benefit and Defined Contribution pension plans. Both the RBC Asset Management and PH&N brands will continue within the combined organization.
de Bever Heading AIMCo
Leo de Bever has been selected as the first chief executive officer of the Alberta Investment Management Corporation (AIMCo). He is currently chief investment officer of Victorian Funds Management Corporation, one of Australia’s top public sector pension funds with $35 billion in assets. His career includes service as executive vice-president of Manulife Financial and senior vice-president of the Ontario Teachers’ Pension Plan.
CFA Institute Meets In Vancouver
The CFA Institute's ‘61st Annual Conference’ will be held from May 11 to 14 in Vancouver, BC. The conference provides a look at the trends and investment issues critical to success in today’s global marketplace. Speakers will cover a range of topics including asset and risk allocation strategies, practical implications of behavioural finance, and investment strategies to exploit the growth of China, hedge fund alphas and betas, consequences of ‘black swans,’ and the future of the dollar and other currencies. For more information, visit http://www.cfainstitute.org/
---------------------------------------------------------
Thursday, May 1, 2008
Employees Unhappy With Pay
Employees are most unhappy with their wages, says a study by The Beacon Group. Compensation and benefits was the lowest scored item on the survey with a failing grade of 49 per cent. Learning, growth, and development fared only slightly better with a score at 51 per cent. More than 31,000 employees from Canada, the U.S., and Mexico participated in the study between 2002 and 2007.
Quebec Permits Phased Retirement For DC
Quebec has tabled legislation to amend the phased retirement provisions of its Supplemental Pension Plans Act (SPPA) to reflect recent changes to the federal Income Tax Act (ITA), says a Watson Wyatt ‘InfoFlash.’ The amendments also break new ground by including measures allowing hybrid and Defined Contribution pension plans to offer phased retirement. Phased retirement is available, upon concluding an agreement with the employer, to members of hybrid or DC plans who are between the ages of 60 and 65. Such employees will receive a benefit, other than a pension, that is calculated and paid as prescribed by the plan. The benefit cannot exceed 60 per cent of the ceiling on the life income that the member could receive under a replacement pension purchased at the end of the fiscal year of the plan immediately preceding the commencement of the phased retirement period.
Pension Funds Follow Endowment Example
U.S. pension funds are following the endowment example in a shake-up of their own portfolios, says research from Greenwich Associates. Pension plan sponsors, however, are not simply adopting endowment asset allocation models. Instead, they are integrating the investment strategies that have worked so well for endowments and foundations into a still-evolving approach to fund management that also includes innovative strategies for closely matching plan assets to pension liabilities, says the ‘2008 Greenwich Associates U.S. Asset Allocation Report.’
Critics Claims Plan Used As Tax Shelter
More than 6 million Americans are enrolled in health insurance plans that allow them to also open health savings accounts, nearly double estimates from just two years ago, say insurance industry projections. However, critics of health savings accounts said taxpayers with health savings accounts had an adjusted gross income averaging about $139,000 in 2005, versus $57,000 for all other filers. This means the wealthy are using the accounts as a tax shelter rather than as a means to help them afford health insurance. Health savings accounts are a relatively new product. Workers who purchase health insurance plans with a high deductible can deposit up to $2,900 into the account tax-free, or up to $5,800 for families. Consumers can use the money in their account to pay their medical expenses or they can save it for future needs, including retirement.
Middleton Moves To KingSett
David Middleton is chief financial officer for KingSett Capital. He was formerly CFO at Genuity Capital Markets and at Mulvihill Capital Management where he held overall responsibility for financial and capital planning, corporate governance, information technology, human resources, regulatory compliance, and providing tax strategies.
Advanced Investment Tools Examined
‘Advanced Investment for Pension Committee Members’ will provide an introduction to advanced investment tools and options including real estate, private equity, managed futures, hedge funds, infrastructure, commodities, and collateralized debt obligations. Sessions will also look at portable alpha and socially responsible investing. It takes place June 4 and 5 in Toronto, ON. For more information, visit http://www.federatedpress.com/PDF
Wong Discusses Drug Trends
‘The Prescription Drug Landscape’ will be the focus of a Manitoba Region CPBI session May 15 in Winnipeg, MB. Connie Wong, a national account manager at Emergis, will discuss drug trends, demographic trends, and health-related trends and how these factors impact drug benefit plans. For more information, eMail daled@mts.net
ISCEBS Holds Seminar
Karin Hiscock, of Morneau Sobeco, will look at health and dental and Tom James, of Pal Benefits Inc., will examine life insurance in the benefits portion of the Toronto Area Chapter of the International Society of Certified Employee Benefit Specialists seminar May 8 and 9 in Toronto, ON. In the pension session, featured speakers include David Kidd, a retirement and investment plan consultant, who will discuss structuring, selecting, and monitoring investments; and Trevor Parry, of GBL Actuaries and Financial Consultants, who will discuss DC plans – accumulation to payout. For more information, visit www.iscebs.org
---------------------------------------------------------
News Archives
April 2008
February / March 2008
December 2007 / January 2008
October / November 2007
August / September 2007
June / July 2007
April / May 2007
February / March 2007 |
