Benefits April 5, 2012

OAS Changes Won't Disrupt Canadian Retirement Plans

April 5, 2012 (PLANSPONSOR.com) – Many Canadians affected by the proposal to increase the age Canadians can collect Old Age Security (OAS) payments to 67 were already planning on working past age 65.
Reported by

Consumer polling conducted in late 2011 among Canadians in the 45 to 54 age group, the first major cohort to experience the changes to the OAS rules, found that while the average target retirement age for these Canadians is 63, more than two-thirds plan to stay engaged in the workforce after they retire, including taking on part-time work (43%), or doing some occasional consulting (22%). This suggests these Canadians were already planning to supplement their income to some extent and stay active in the workforce.

Looking ahead to their sources of income in retirement, 30% said they plan to rely primarily on their own savings, while 25% said they believe government payments would be a key source of income. Another 25% named private pensions as their primary source of income.

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One-quarter (26%) of respondents said they expect to carry some debt into retirement. One in six (17%) Canadians between 45 and 54 said they will still have a mortgage payment when they retire.

The survey data was gathered among a sample of 1,116 employed Canadians from September 14-21, 2011. 

Benefits April 5, 2012

Colorado Treasurer Denied Access to PERA Records

April 5, 2012 (PLANSPONSOR.com) - Colorado Treasurer Walker Stapleton lost his bid for a court order for access to records of the state’s Public Employees Retirement Association (PERA). 
 
Reported by

Stapleton filed a suit in September after his earlier request for access to records of the top 20% of PERA’s recipients was denied (see “CO Treasurer to Sue for Pension Information” and “Colorado PERA Pushes Back on Member Disclosure”).

Stapleton had requested the annual retirement benefit, year of retirement, age of retirement, last five years of salary as a PERA member, employer division and ZIP code information, reports PERA.

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Denver District Court Judge Edward D. Bronfin stated,  “The Treasurer—just like any Trustee of the PERA Board—is not entitled to unlimited, unfettered access to individual PERA member and benefit recipient information which is rendered confidential by statute. Rather, any request for such confidential information must be in furtherance of the Treasurer’s—or other Trustees’—fiduciary duty ‘solely’ to act in the interest of PERA members and benefit recipients…The request for confidential information must reasonably be calculated or designed to further ‘solely’ the interests of PERA members and benefit recipients.” 

Bronfin concluded, “Here the Treasurer was unable or unwilling to provide his co-Trustees and co-fiduciaries with any explanation about how the requested information was reasonably designed to further ‘solely’ the interests of PERA members and benefit recipients.” He explained further, “Because the Treasurer was unable to articulate any legitimate explanation for how or why the requested information was needed, or how or why it would further his fiduciary duty ‘solely’ to PERA members and benefit recipients, the court concludes…the PERA Board acted appropriately in denying the Treasurer’s request for the requested information.”

 

 

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