CANADA - Private pension assets should not be lumped with the Canada Pension Plan (CCP), as the temptation to use funds for political aims would be too great, according to Steve Bonnar, principal at Towers Perrin.
Some sections of Canadian industry have repeatedly proposed investing private sector pension funds in the CPP in a bid to reduce costs and have them managed more professionally.
Anne Swift, president of the Canadian Federation of Independent Business (CFIB), was the most recent industry player to make the call, as she claimed the gap between public and private pensions was widening.
But while Bonnar agreed the industry should facilitate a large pool of assets, he said the money should not all be invested in one place with the government.
“The temptation to use CPP investments for political ends would be too great if you drastically increased the amount of assets under the CPP’s control,” he said.
“I have concerns over the concentration of capital under the government and the private sector is a better place for that to be.”
Bonnar suggested economies of scale could be achieved by using a handful of private sector providers as general contractors, bringing together the necessary sub-contractors to provide an effective vehicle.
Johnson Controls International has appointed XPS Pensions as investment and actuarial adviser for two of its schemes, following a competitive tender process.
Merseyside Pension Fund has allocated an initial £400m of assets to a smart sustainability fund managed by State Street Global Advisors (SSGA).
This week's top stories included exclusive coverage of The Pensions Regulator's plans to require schemes to use professional trustees.
Buck has launched a solution to help pension schemes equalise guaranteed minimum pensions (GMPs) in a cost effective way with minimum hassle.