Featured News and Research

• Ontario Pension Reform Update

  The Ontario government is moving forward with previously announced pension reform. On April 30, 2012 and May 3, 2012, draft Regulations were released for consultation.
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  Letters of Credit: Will They Solve The Pension Funding Crisis?

  In this issue of Rethinking Retirement, we discuss a plan sponsor’s considerations when assessing whether an LoC is a useful tool to help manage their pension funding risk. We also explain why we believe LoCs represent a part, but not all, of the solution to Canada's pension funding challenges.Continue reading...

• Highlights of the 2012 Federal Budget

  On March 29, 2012, the Honourable Jim Flaherty presented the “Economic Action Plan 2012”. Consistent with expectations, the government proposes to increase the normal retirement age under the Old Age Security (OAS) and Guaranteed Income Supplement (GIS) programs, commencing in 2023.Continue reading...

• Highlights of the Ontario Budget 2012

  On March 27, 2012, Ontario Finance Minister Dwight Duncan tabled the 2012 Ontario Budget, “Strong Action for Ontario”. The Budget contains a number of initiatives intended to reduce the deficit, including measures affecting pension plan funding and administration, public sector pension plans, seniors’ drug benefits and public sector compensation. This Advisory discusses the measures of interest to pension and benefit plan sponsors and public sector employers.Continue reading...

• Highlights of the Quebec Budget 2012

  On March 20, Quebec Finance Minister Raymond Bachand tabled his 2012 2013 Budget. With this deficit budget, the government intends to attain its goal of a balanced budget in 2013 2014 by controlling the Quebec debt.Continue reading...

• Manitoba Releases New Regulations Impacting Pension Plans

  Manitoba has adopted a Special Payments Relief Regulation, 2011 and Regulation 205/2011 to permit special payment funding relief and letter of credit funding in lieu of solvency special payments.Continue reading...

• A Readiness Checklist: Potential Changes to the Ontario Drug Benefit Program

  Changes proposed to the Ontario Drug Benefit Program (ODB), by the Drummond Report, could have significant financial implications for members and sponsors of retiree drug plans.Continue reading...

• Government Benefits Update 2012

  Towers Watson is pleased to present its annual Government Benefits Update, which is designed to provide a convenient and comprehensive summary of information of interest to employers and plan sponsors. This document addresses the primary funding and benefit features of Canada’s social security and public health care insurance programs, as well as the taxation of employment benefits.Continue reading...

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  Thematic Investing

  Why is thematic investing a good idea? Our paper highlights potential investment themes we believe will be important in successfully shaping future asset allocation and risk management strategies.Continue reading...

• AcSB Exposure Draft, Employee Future Benefits

  In late January 2012, the Accounting Standards Board (AcSB) issued an Exposure Draft (ED), Employee Future Benefits, which proposes to replace Section 3461 of Part II (Accounting Standards for Private Enterprises or “ASPE”) of the Canadian Institute of Chartered Accountants (CICA) Handbook with new Section 3462.Continue reading...

• Pension Worries On the Rise for Both Defined Benefit and Defined Contribution Plan Sponsors, Towers Watson Survey Finds

  A new survey of 115 Canadian Defined Benefit (DB) and Defined Contribution (DC) pension / Capital Accumulation (CAP) plan sponsors from Towers Watson suggests that a growing sense of pessimism is settling over the Canadian pension landscape.Continue reading...

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  Canadian 2011-2012 Pension Administration Survey Results

  The survey results show that sponsors view pension administration through a risk management lens. Sponsors today seek efficient administration at a competitive cost, offered by a team with experience and expertise with plan designs like theirs.Continue reading...

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  Towers Watson Perspective: De-risking Investment Policies

  How de-risking can help DB plan sponsors better meet their long-term risk/reward objectives.Continue reading...

• New Brunswick Amends Pension Legislation and Provides Funding Relief

  New Brunswick has amended its pension standards legislation to provide for temporary funding relief for defined benefit (DB) registered pension plans (RPP).Continue reading...

• Nova Scotia Announces New Pension Benefits Act and Draft Funding Regulations

  On November 16, 2011, the Nova Scotia government announced the release of Bill 96, the Pension Benefits Act (Act) and on December 15, 2011, the Bill received Royal Assent. The Bill has yet to be proclaimed and is therefore not in effect. Continue reading...

• Canada Pension Plan Contributions and Self-Insured Disability Benefits: The Rules Change Again

  In December 2011, the federal government amended the Canada Pension Plan (CPP) to clarify that contributory earnings for CPP purposes include all employer-funded disability benefits provided on a self-insured basis. Continue reading...

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  Can You Hear Me Now? Plan Sponsors, Plan Members and How Social Media Can Connect Them

  Your plan members are bombarded with dozens, if not hundreds, of messages each day: instant messages, voice mails, emails, corporate bulletin boards and more. The overload of messages not only causes confusion about what’s really important but can also have a desensitizing effect. This “communication clutter” can make it increasingly difficult for plan sponsors to build awareness and understanding of — and generate value from — organizational priorities and programs.Continue reading...

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  Clear Direction in a Complex World: 2011 – 2012 Change and Communication ROI Study Report

  Towers Watson research into the pivotal role that effective change and communciation processes play in global organizations.Continue reading...

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  2011/2012 Staying@Work Report - Canada Executive Summary

  2011/2012 Staying@Work Highlights Report: A Pathway to Employee Health and Workplace ProductivityContinue reading...

• CAPSA Investment Practices Guideline, Investment Self-Assessment Questionnaire and Funding Policy Guideline

  On November 15, 2011, the Canadian Association of Pension Supervisory Authorities (CAPSA) released the following documents CAPSA Guideline No. 6 and CAPSA Guideline No. 7.Continue reading...