Latest news with #PensionPlan
Bloomberg
21-05-2025
- Business
- Bloomberg
Canada's Largest Pension Plan Quietly Abandons Net Zero Target
Canada Pension Plan Investment Board dropped its commitment to achieve net zero emissions by 2050 just three years after establishing the target. The pension plan, which has about C$714 billion ($515 billion) in assets, cited recent legal developments that have changed how such commitments are interpreted. CPPIB's investment portfolio is too complex for standardized emissions metrics and interim targets, according to the firm.
Cision Canada
21-05-2025
- Business
- Cision Canada
Yellow Pages Limited Purchases Group Annuity Contracts De-Risking Its Defined Benefit Pension Plan Français
, May 21, 2025 /CNW/ - Yellow Pages Limited (TSX: Y) (the "Company"), a leading Canadian digital media and marketing company, today announced the purchase of group annuity contracts from BMO Life Assurance Company ("BMO Insurance") that will facilitate the transfer of approximately $210 million of its defined benefit pension plan (the "Pension Plan") obligations, and related assets for certain retirees and beneficiaries. Under the agreement, BMO Insurance will issue annuities covering the responsibility for pension benefits of approximately 860 pensioners and beneficiaries of the Company, which represents a significant portion of the Company's Pension Plan members, and will begin administering all benefits to these members beginning October 2025. There will be no change to the pension benefits for any plan participants as a result of the transaction. Following the transaction, benefits for transferred plan participants will be protected under Assuris, the life insurance compensation association designated under the Insurance Companies Act of Canada. "We are pleased to have reached this agreement as it strengthens our balance sheet and lowers the risk from pension obligations, while allowing the pensioners and beneficiaries to receive equivalent pension benefits from BMO Insurance, a highly rated Canadian insurer with strong expertise in long-term management of retirement benefits. The Company intends to reallocate the benefits of the reduced risk towards activities that will continue to "bend the revenue curve"" said David A. Eckert, CEO of Yellow Pages Limited. This transaction is aligned with the plan to derisk the Pension Plan and protect the realized investment gains and wind-up ratio. Following the transaction, the Company will have reduced its Pension Plan obligations by approximately 50 percent. The purchase of the group annuity contracts will be funded directly by assets of the Pension Plan. The Company also intends to voluntarily contribute an additional $4 million to the Pension Plan by the end of June 2026, subject to review by its board of directors. As a result of the transaction, the Company expects to recognize a non-cash net settlement loss during the second quarter of 2025. TELUS Health acted as advisor to the Company in this transaction. About Yellow Pages Limited Yellow Pages Limited (TSX: Y) is a Canadian digital media and marketing company that creates opportunities for buyers and sellers to interact and transact in the local economy. Yellow Pages holds some of Canada's leading local online properties including Canada411 and The Company also holds the YP, Canada411 and 411 mobile applications and Yellow Pages print directories. For more information visit Caution Concerning Forward-Looking Statements This press release contains certain statements related to future events and expectations, and as such constitute forward-looking statements within the meaning of applicable securities laws. Statements regarding management's views with respect to future events relating to and the financial impact of the Company's agreement with BMO Life Assurance Company to purchase a group annuity contract (the "Agreement") are subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. We disclaim any intention or obligation to update any forward-looking statements, except as required by law, even if new information becomes available, as a result of future events or for any other reason.
Toronto Star
26-04-2025
- Business
- Toronto Star
Perhaps it's time Alberta does go it alone and says goodbye to Canada
Alberta is giving me a headache. The province stands alone in its incurable sense of grievance with the rest of the federation. Not even a $34.2-billion expansion of the Trans Mountain pipeline (TMX) built by Ottawa to get Alberta oil to non-U.S. markets for the first time has reduced Alberta's bellyaching. The expanded TMX pretty much guarantees high Alberta oil production and employment for decades to come. The Canadians who paid for the TMX with their tax dollars are still waiting for a word of thanks from Albertans. ARTICLE CONTINUES BELOW But Alberta doesn't do gratitude. It does righteous indignation, ad nauseam. Perhaps Alberta should go its own way and then have only itself to complain to. Not that there's much to complain about in one of the world's most prosperous jurisdictions. Even more reason for Alberta to go it alone. Its population of about 4.4 million roughly equates with that of New Zealand and a self-governing Scotland. At a time when Canada's sovereignty is under attack from the U.S., a couple of prominent Albertans backed by an energetic grassroots Alberta separatist movement are undermining Canadian unity, which otherwise is at a zenith not seen since Expo 67. As earlier noted in this space, the most effective means of quickly ending U.S. President Donald Trump's economic attack on Canada would be a 300 per cent export tax on the Alberta oil shipped to the U.S. The U.S. relies on Alberta for about 20 per cent of its total oil consumption. But Alberta Premier Danielle Smith balks at that. 'If they (Ottawa) start stealing more of our money and trying to control more of our future, I think Albertans will boil over,' Smith said of export tariffs, which no dictionary defines as theft. The larger context here is Smith's oxymoronic Alberta Sovereignty Within a United Canada Act, by which Alberta can attempt to override federal laws it doesn't like. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW And there's Alberta's mooted carve-out from the Canada Pension Plan (CPP) by which it seeks 53 per cent of the CPP's assets, having contributed only about 16 per cent of those assets, according to the Canada Pension Plan Investment Board (CPPIB). Smith and her Ontario counterpart, Premier Doug Ford, are a study in contrasts. In waging the tariff war against Trump, Ford has threatened to cut off electricity exports to the U.S. And in the Ford government's throne speech last week, Ontario said it will 'champion' new oil and natural gas pipelines to reach new markets for Western Canada's fossil fuels. That was a generous nod to Alberta. Smith has not championed but demanded unfettered access to the rest of Canada for new pipelines criss-crossing the country. If Smith has any sensitivity to people elsewhere in Canada, including Indigenous Peoples, who might object to having pipelines traversing their land, she doesn't show it. That unrestricted pipeline construction was one of nine demands Smith made in her first meeting with Prime Minister Mark Carney on March 20. She said her demands must be met by a new federal government in six months to avoid an 'unprecedented national unity crisis.' ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW And there's Preston Manning, a co-founder of the Reform Party and an Alberta nationalist, warning Canadians in an April 2 newspaper column that a vote for the Liberals in the April 28 election is a vote for Western secession — 'for the breakup of Canada as we know it.' Manning has subjected Canadian voters to extortion, a sordid gambit that only the most strident Quebec nationalists have attempted. Absent Alberta, Canada could confront Trumpism as a more united front. And Canadian taxpayers would no longer have to subsidize Alberta's oilpatch, its increased housing supply, and its university research projects. No one from Ottawa asked me what I would do with the $34 billion in taxpayer money — including mine — allocated to expanding the TMX. I might have said the TMX can wait. And suggested that the money be spent instead on cutting health-care wait times and rebuilding a largely deficient long-term-care sector where so many Canadian seniors died in the pandemic. Alberta's separation would reduce the Canadian economy by about $460 billion, or 15 per cent. That's no trivial loss, but it's bearable. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW The real loss would be Alberta's entrepreneurial culture; its powers of endurance, forged in the Dust Bowl, the Great Depression and more than one collapse in world oil prices; and the remarkable people Alberta produces — Peter Lougheed, Marshall McLuhan, Max Ward, Michael J. Fox, Chrystia Freeland, Mark Tewksbury, Grant Fuhr, and k.d. lang, to name a few. Sadly, the Canadian patriotism those Albertans did and do represent has been betrayed by the self-involved parochialism of Alberta's current political leadership class and its followers. If only one could take a pill and make that go away. But it might be that there ain't no cure for Alberta except to wave goodbye.
Yahoo
12-03-2025
- Business
- Yahoo
Family Finance: Early retirement could cut B.C. couple's pension income nearly in half
British Columbia-based couple Gloria* (49) and Rob (51) are focused on an early retirement and a career-change for Gloria. But are the two goals compatible? They each earn about $80,000 a year each before tax, and Rob will be eligible for two pensions from previous employers that should pay out a combined $2,000 a month if he retires at 60. Gloria, who immigrated to Canada in 2009 and started working here in 2010, wants to retrain to move into a new field (she declined to specify her field for privacy reasons). She anticipates if she does leave her current role and field, her annual income will likely drop by about $10,000. 'Will I be able to retire at 63 if I make this move?' The couple recently paid off the mortgage on their primary residence, which is valued at $800,000. They plan to stay for at least the next 10 years, at which point they will likely downsize but remain in the same area. They also own a rental property with a current market value of about $600,000 that generates about $3,000 a year in rental income after expenses. It has a $200,000 mortgage at 3.8 per cent ($1,300 a month) that will be up for renewal in 2027. 'We view the rental property as a way to diversify our investments,' said Gloria. However, it's an older property with big maintenance bills on the horizon, including a new roof. The cost of upkeep and insurance is exceeding rental increases and inflation. 'Our plan was to keep it for another 10 to 20 years, but are we better off to sell now and invest the proceeds?' she asked. The couple is hesitant, as the real estate market is softening. 'We have long-term renters who currently pay $1,975 a month. If they were to leave, we could increase the rent to better reflect market prices, but that doesn't seem likely.' The couple feel stuck and would like to know what the experts advise. Sell now or wait it out? Gloria and Rob have an investment portfolio that includes about $30,000 in cash to cover emergencies, $108,000 in tax-free savings accounts (TFSAs), and $242,000 in registered retirement savings plans (RRSPs). All of these registered accounts are invested for growth in exchange-traded funds. Now that they have paid off the mortgage on their primary residence, they plan to focus on maximizing TFSA and RRSP contributions. When it comes to their plans for retirement, they would like to travel for at least the first five to eight years, including three-to-four month stays in different countries. Their current monthly expenses are about $4,840. Both Gloria and Rob also plan to continue working part-time in retirement, although they are not sure what that might look like or how much they would earn. They wonder when they should consider drawing Canada Pension Plan (CPP) and Old Age Security (OAS) benefits. Eliott Einarson, a retirement planner at Ottawa-based Exponent Investment Management, said with the mortgage paid off on their primary residence freeing up cash flow to increase savings it's the ideal time to engage a professional to help them create their financial plan. 'Their situation has a lot of variables that need to be considered and some that need to be clarified,' he said. 'This will include income and asset projections over the next 40 years that will lead to strategies to maximize income and minimize tax throughout retirement.' There are several key questions the couple needs to address, Einarson said. For example, is Rob willing to retire five years early for almost half the lifetime pension? Is his pension indexed to inflation? If they do work in retirement, how much income can they realistically earn part-time and for how long? How much do they plan to save each year now that the mortgage is paid off? What will the extensive travel in retirement really cost? Do they have health or medical concerns? What about estate goals? When will they downsize and how much equity, if any, would that unlock? How would they feel about losing money on the rental property? Do they want to manage their own portfolios throughout retirement and how will they deal with market changes? 'The rental property is a great example of their need for a planning consultation and broader discussion of how this investment fits into the picture,' said Einarson. 'They claim that the rental was a way to diversify their investments, but real estate makes up about 80 per cent of their total net worth and only generates $3,000 net a year. This property might be the largest risk that could derail their retirement plans and so should be addressed in the context of their goals and risk tolerance.' Based on current investments and future pension and government benefit estimates, Gloria and Rob will likely meet their basic income needs at 63 and 65 respectively, said Einarson, while acknowledging basic needs will differ from total income goals. 'A total net income of about $8,000 a month is possible if they work until Rob is 65 and therefore receives his full unreduced pension and CPP. A retirement before this age would compromise their income significantly as Rob will have a much-reduced pension and CPP, and investments receive less time to grow. If they retire when Rob turns 60, he and Gloria would be able to sustain about $5,000 a month in total net income for life, just over 37 per cent less.' Our children can't support themselves. What can we do? Having a financial plan can give you some peace of mind 63-year-old wonders if she can retire with $100,000 debt Selling the rental property now and using the cash to boost investments and future income could help them reduce risk and better afford an earlier, more comfortable retirement. 'However cash flow is just one side of the equation,' said Einarson. 'The key is going to be discovering their future needs through the planning process. Once they know what they need and are comfortable with that target they can plan around that. For some $5,000 a month will be a dream retirement but not for many others.' Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course). *Names have been changed to protect privacy Sign in to access your portfolio
Yahoo
05-03-2025
- Business
- Yahoo
The Government spent the Royal Mail pension pot – costing taxpayers £4m a day
Taxpayers have been handed a £45bn bill for Royal Mail's pensions after government mismanagement left the scheme with no money to pay retirees, The Telegraph can reveal. The coalition government took over most of the company's pensions in 2012 ahead of privatisation, but then spent the scheme's assets and left taxpayers on the hook for decades of payments, an expert warned. As a result, the gold-plated scheme has cost taxpayers £16.5bn since 2012, an average of around £3.8m a day, fresh analysis of official data shows. There is another £28.7bn still to pay before the scheme finally ends. It comes after The Telegraph exposed several incidents of waste and mismanagement across the UK's public sector pension schemes. The NHS was found to have lost £5.6m by sending money to dead pensioners that cannot be recovered and the Government has spent £1.25bn bailing out the Environment Agency's pension scheme. Royal Mail had been facing difficulties since the turn of the century, as the rise of email and the internet affected demand for posting letters. In 2010, the coalition government started making the argument for privatisation and two years later, Royal Mail was separated from the Post Office. To prepare for privatisation, the Government also assumed responsibility for the Royal Mail Pension Plan's deficit and most of its pensions in April 2012. Retirement payments accrued up to this date were moved into the newly created Royal Mail Statutory Pension Scheme. However, the Government did not use the scheme's existing funds to make investments for future pension payments. Instead, Parliament has since voted on the amount needed each year, and the pensions are then paid in full – leaving the taxpayer to foot the bill. Neil Record, a former Bank of England economist, said: 'The Government promised index-linked pensions to a large group of employees, then took the £29bn that sat in the pension fund and spent it. 'Out of the blue, a new unfunded liability of approximately £50bn emerged solely to allow the Government to sell off the Royal Mail. 'That £50bn is saddling future taxpayers with the obligation to repay this debt.' The scheme is closed, meaning no one else can join and no more contributions are added. It will run for as long as there are members drawing a pension. The cost of the scheme has risen from £1.2bn back in 2012-13 to £1.6bn last year. The scheme forecasts that this will rise to £1.7bn this year. Almost 204,000 retirees are already receiving payments, while another 145,000 have built up pensions and are still working. The pensions on offer provide a guaranteed, inflation-linked income for life, and many come with a tax-free lump sum. Royal Mail's privatisation began in 2013 and was completed by 2015. Current workers are members of the Royal Mail Pension Plan and have earned contributions towards retirement pots, rather than final salary pensions, since 2018. The scheme's latest valuation showed a surplus of over £1bn. In October last year, the company then became the first in Britain to offer a collective pension fund, similar to those in Canada and Denmark. It is currently in the middle of a takeover bid from Czech billionaire Daniel Kretinsky. The Cabinet Office, which is responsible for the closed scheme, declined to comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
