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October 4, 2022

Gender Retirement Gap Fails To Narrow

Women in Canada, on average, received 18 per cent less retirement income than men in 2020, says an analysis by Ontario's Pay Equity Office (PEO). This is three per cent higher than the 15 per cent gap observed in 1976, the earliest year for which data is available. While the gender pension gap (GPG) has fluctuated over the decades, it has not narrowed. It is also a persistent global phenomenon. The average GPG across 34 member countries in the Organization for Economic Cooperation and Development (OECD) was 25.6 per cent. Domestically, a GPG can be observed in every province in Canada, with the narrowest gap in Prince Edward Island at 13 per cent and the widest gap in Alberta at 23 per cent in 2020. Kadie Ward, commissioner and chief administrative officer of the PEO, believes these findings warrant attention. "We see that the gender wage gap (GWG) has narrowed with time ‒ meaning, women's wages in Canada have steadily increased with time to be closer to that of men's, although the gap has not closed completely. A natural assumption would be that with increased wages, the pension gap would also begin to close with time, but this does not appear to be the case."

October 4, 2022

Alberta Plan Would Cost More Eventually

The creation of a provincial pension plan could result in fewer benefits and higher costs for Albertans, federal civil servants believe, but there would also be little Ottawa could do to block such a move, says a report in the Edmonton Journal. Using a collection of eMails, briefing notes, a slide deck for the Canada Pension Plan (CPP) policy, and legislation division acquired through an access to information request, it says, “Duplicate administration, limited risk pooling, and greater risk on investment returns likely mean that while Albertans would have a lower contributory rate to start, over the long term the contributory rate would likely exceed that of the CPP.” Costs of plan administration and managing investment funds are not insignificant as Alberta would have to create its own tax infrastructure and determine how it would collect contributions and deliver benefits. Despite this, creating an Alberta Pension Plan (APP) would be difficult, but not impossible.

October 4, 2022

Financial Position Declines

Unlike in the first and second quarters of 2022, the financial position of most defined benefit pension plans decreased in the third qu