The solvency of Canadian pension plans has improved, says reports from two industry consultancy firms.
The Mercer Pension Health Index, which shows the ratio of assets to liabilities for a model pension plan, stood at 82% on December 31. This is up 6% on the year.
But Manuel Monteiro, partner in Mercer’s Financial Strategy Group, says the improved position was due to plan sponsor intervention rather than economic improvement. Read more.
In related news, the Globe and Mail says Canada’s regulators have serious concerns about the viability of a rising number of private pension plans.
It adds the Office of the Superintendent of Financial Institutions supervises roughly 1,400 private pension plans in federally regulated businesses such as banking, airlines and telecom. When they seem at risk, the group places them on a watch list to be actively monitored.
Read more about why plans are struggling.
Also check out:
Vik’s pick: PRPPs are missing the point
Retirement savings back on government’s agenda
Takeaway: How long will you live?