Canadian Participants Drive Their Investments

January 17, 2002 (PLANSPONSOR.com) - Canadian defined contribution plan participants are firmly in control of their employer-sponsored retirement savings, a Watson Wyatt study finds.

The consulting company’s COMPARISON Canada report shows that more than two-thirds of Canadian companies with defined contribution plans let employees make investment choices.

According to the study, 77% of Canadian plan sponsors also permit investment changes at any time.

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Watson Wyatt also found an erosion in employer-sponsored retiree health programs. Only 31% of respondents give retired workers health insurance  – down from over 50% in a 1996 study.

The study also found that:

  • some 12% of the organizations have no pensions,
  • almost 28% have defined benefit plans only,
  • a little over 40% have defined contribution plans only, and
  • only 13% have combined plans

Further, almost half of the participants in the financial sector offer retiree health benefits, compared to less than 20% of high-tech companies.

Of the 31% of those offering retiree health coverage, 38% give retirees and active workers the same health benefit.

 

UIT Deposit Increases Slowed in October

January 16, 2002 (PLANSPONSOR.com) - Deposits to Unit Investment Trusts increased by $1 billion in October 2001, significantly below a year before when deposits were up $2.8 billion, according to figures compiled by the Investment Company Institute (ICI).

Unit investment trusts, or UITs, are investment companies that purchase fixed portfolios of selected stocks or bonds.

Also, according to the ICI:

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  • Deposits to equity trusts were  $817 million in October 2001, down from $2.4 billion in October 2000
  • Tax-free bond trusts issued shares in October 2001, with deposits of $113 million, compared with $66 million in October 2000
  • Taxable bond trusts shares were also way down in October at $73 million, compared with $264.million a year earlier.

There were 20 new tax-free bond trusts issuing shares in October 2001, two new taxable bond trusts, and 55 new equity trusts.

In terms of maturity, long-term bond trusts having an average weighted maturity of more than 15 years were the most commonly offered in October 2001, with $160 million in shareholder deposits.

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