November 2020

23Nov

There’s a way to fix the $4.6 trillion U.S. public pensions mess — Canada shows us how

In Ernest Hemingway’s “The Sun Also Rises,” Mike is asked how he went bankrupt. His reply: “Two ways. Gradually, then suddenly.” He might as well be describing the prognosis for many of the nation’s 5,300 public pension funds, which hold $4.4 trillion in assets against what the Federal Reserve estimates to be $9 trillion in liabilities. Most U.S. public pensions plans were in surplus in 2000. Today, based on their own accounting – which differs from that of the...

November 23, 2020
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19Nov

Canada. More firms disclosing climate-related risks, strategies: report

Within the last three years, Canada’s financial firms have increasingly begun providing insight on their material climate-related risks and goals in alignment with recommendations from the Task Force on Climate-related Financial Disclosures (TCFD), A new study from the Global Risk Institute in Financial Services (GRI) said there’s been a 40% increase in the number of companies that provide TCFD-related disclosure and information. There are now 25 firms, include big banks and pension funds, that follow TCFD recommendations, compared to...

November 19, 2020
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October 2020

30Oct

Equity returns fuel Q3 Canadian pension fund returns

Strong global equity markets continue to augment pension plan returns with Canadian defined benefit plans returning 3.2 percent for the third quarter, according to the Northern Trust Canada Universe. The Northern Trust Canada Universe tracks the performance of Canadian institutional investment plans that subscribe to performance measurement services as part of Northern Trust’s asset service offerings. Overall, equity markets navigated pockets of volatility, closing the quarter in positive territory, while financial markets appeared to shrug off fears perpetuated by...

October 30, 2020
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21Oct

Canada. Quebec Pension Launches Fund to Boost Diversity in Smaller Firms

Caisse de Depot et Placement du Quebec is launching a C$250 million ($190 million) fund to invest in small and medium-sized businesses in Canada that have diverse executives and owners. To be eligible, companies must promise that at least 25% of their boards, management teams and shareholders will be comprised of people of diverse backgrounds -- including women, visible minorities and indigenous people -- in the five years following the investment, Caisse said in a statement. “It has been...

October 21, 2020
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19Oct

Canada. CPPIB urged to plan now for net-zero reality

Despite Canada's economic reliance on its oil and gas industry, finance experts and sustainability advocates are urging large public investors like the C$434.4 billion ($326.3 billion) Canada Pension Plan Investment Board to implement long-term investment strategies that better align with the federal government's pledge to achieve net-zero carbon emissions by 2050. Multiple sources agree that Toronto-based CPPIB, Canada's largest pension fund, should support the country's transition to a low-carbon economy, enhance its disclosure of fossil-fuel investments and set a...

October 19, 2020
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12Oct

Canada. Commission on Aging to hear about COVID-19 impact on elderly at Oct. 21 meeting

The meeting, which takes place Wednesday, Oct. 21 at 4:30 p.m., will feature community resource organizations that assist and/or provide older adults with their everyday needs, such as food, supplies and medications The commission wants to hear how COVID-19 has impacted the older adults they serve and how they have modified their services during the pandemic. The presenters include: Mikayla Springob, Area Agency on Aging and Disabilities of SW Washington Emily Kaleel, Clark County Food Bank Jeananne Edwards, Human...

October 12, 2020
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08Oct

Canada. The Minister of Finance tables Bill 68 to allow the establishment of target benefit pension plans

Minister of Finance Eric Girard today tabled in the National Assembly Bill 68, the Act mainly to allow the establishment of target benefit pension plans (TBPP). In addition to offering Québec workers an additional savings option, the bill satisfies the needs of employers and employees, especially from the standpoint of sharing financial risks. A target benefit pension plan includes the characteristics of a defined-benefit pension plan and a defined contribution plan: the plan guarantees participants the payment of an...

October 8, 2020
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06Oct

Is Canada Pension Plan really committed to fight climate crisis?

Last month, Mark Machin, CEO of the Canada Pension Plan (CPP), wrote that climate change is the crisis beyond COVID-19 that we can’t afford to ignore, stating that “the full effects will depend on the actions we take now and in the future.” Read also Canada. The Minister of Finance tables Bill 68 to allow the establishment of target benefit pension plans We strongly agree. So why, then, is CPP pouring billions of our retirement savings into oil, gas and...

October 6, 2020
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02Oct

Canadian investors acknowledge systemic racism, pledge action

A group of 31 Canadian institutional investors representing $2.3 trillion in assets has signed a joint statement acknowledging systemic racism against black and indigenous populations and pledging to take steps to integrate diversity and inclusion into their investment processes. Read also Canada’s pension fund plans to invest a third of funds in emerging markets by 2025. India is a major component The Canadian Investor Statement on Diversity & Inclusion has been signed by Canadian pension plans and money managers including...

October 2, 2020
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September 2020

29Sep

Canada. Ontario implements new funding relief measures for defined benefit plans

Ontario Regulation 520/20 (the “Amending Regulation”) which amends Regulation 909 under the Pension Benefits Act (Ontario) (the “PBA”) came into force. The Amending Regulation provides temporary relief from pension funding obligations to employers of certain Ontario-registered defined benefit plans in two respects, as discussed below. Extension to make Catch-up Contributions The Amending Regulation provides employers of Ontario-registered defined benefit plans with a temporary extension of time to make contributions that are due under a valuation report (“Catch-up Contributions”) that...

September 29, 2020
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