Category Pension Reform

“Meeting the global challenge of funding retirement” –Highlights of Robert Merton’s CFA Institute seminar

In a nutshell- In this 90 minute CFA Institute seminar, Nobel prize winning Professor Robert Merton tackles some of DC pension plans’ well known but unresolved deficiencies in a holistic approach to the mass/working class pension. He sets the stage by pointing out that, in the shift from DB to DC average workers were by default […]

Expanded-CPP Plus

In a nutshell -An expanded-CPP, let’s call it expanded-CPP Plus, may in fact be a good framework for Canada’s pension reform.  If one expands options beyond the dimensions (maximum pensionable earnings and percent benefits) currently under consideration, and one changes some of the other attributes of an expanded-CPP relative to the current CPP, profound changes to Canada’s […]

Took CPP at 65 instead of the previously planned age 70: What changed?

In a nutshell: The combination CPPIB investment strategy changes from passive to active, potentially higher effective future taxes, less transparency in CPP asset valuation due to growing proportion of private (company and real estate) vs. public investments, uncertainty of actuarial forecasts and, should circumstances demand it, government’s ability to change CPP (target) benefits, drove my […]

Pure longevity insurance payout option in CPP would reduce retirees’ longevity risk

Adding a pure longevity insurance payout option to the CPP would go a long way to ease the pain of private sector employees with disappearing pensions. This blog adds some meat to the proposal I mentioned in last week’s PRPP or expanded CPP? Consider adding a pure longevity insurance payout option to the CPP. The PRPP doesn’t meet […]

PRPP or expanded CPP? Consider adding a pure longevity insurance payout option to the CPP

 The debate whether Canadians would be better of with the PRPP or an expanded CPP was recently reignited with the Ontario government (rightly) re-thinking the wisdom of the PRPP over an expanded CPP. This morning’s news that McKinsey has issued a report (which I have not read and I don’t know who commissioned it) suggests […]

Pension Reform (presented to Ontario Expert Commission on Pensions- Nov 1, 2007)

Problems and solutions for DB pension plans and a proposal for pension system revolution (presented to Ontario Expert Commission on Pensions in Ottawa on November 1, 2007) ‘click’ on Pension Reform

Pension Roundtable: Pension/Retirement Plan Reform

Pension/Retirement Plan Reform One of the interesting topics at the CFA conference that I recently attended was the topic of required pension changes to be implemented urgently with the accelerated unraveling of the defined benefit (DB) plans, the misapplication of the defined contribution (DC) plans and the often mentioned inadequately funded Social Security liabilities. At […]