CANADA - The Canada Pension Plan (CPP) reserve fund grew C$4.7bn to $91.7bn in the third quarter of 2005.
The bulk of growth ($4bn) came from investments in publicly traded stocks, private equity, real estate, infrastructure and government bonds for a rate of return of 4.5% for the quarter (not annualised).
The $700m earnings came from CPP contributions not needed to pay current pensions. As of end Q3, the fund consisted of 55.5% ($50.8bn) publicly traded stocks, 30.8% ($28.3bn) of government bonds, 4.3% ($3.9bn) cash and money market securities, 5.6% ($5.2bn) real return assets and 3.8% ($3.5 bn) private equity. Based on actuarial projections, CPP contributions are expected to exceed benefits paid until 2022, providing a 17-year period before a portion of the investment income from the reserve fund is needed to help pay CPP benefits.
Proposed changes to The Pensions Regulator's (TPR) notifiable events framework so it can be more proactive when corporates make changes will create a very challenging workload, it has been said.
Aviva has created a new pension skill for Amazon Alexa that allows customers to find out how much they have saved towards their retirement.
PP has compiled a list of what to watch out for over the coming months.
The proposed cold-calling ban may be ineffective if a collaborative regulatory approach between the UK and the European Union (EU) is not maintained post-Brexit, the Pensions Management Institute (PMI) has warned.