Pension Pulse

OMERS issued a press release earlier stating it contributes $13.7 billion annually to Ontario’s GDP, supporting 143,000 jobs: OMERS, the defined benefit pension plan for municipal sector employees in Ontario, contributes $13.7 billion annually to the province’s GDP, according to new research conducted by the Canadian Centre for Economic Analysis (CANCEA). OMERS released the study on Pension Awareness Day (February 15) to highlight the importance of pensions to members, to all Ontarians, and to our province’s economy. “By delivering on our commitment to our members, OMERS continues to create economic value in Ontario,” said Jonathan Simmons, OMERS Chief Financial and Strategy Officer. “OMERS retirees spending their pension payments, activity from our investments, and the impact of our operations support more than 143,000 jobs provincewide – up 19% from three years ago.” Based on a review of 2023 data, OMERS overall contribution to Ontario’s economy grew by 14% in the pas...

Earlier today, CDPQ issued a press release stating it has acquired an 80% stake in a solar plant in Japan: CDPQ, a global investment group, today announced it has acquired an 80% stake in a solar power generation plant in Japan, alongside its portfolio company Shizen Energy Inc. (Shizen Energy). The Inuyama project, which went into operation in the last few days, has a total solar power generation capacity of 31 MW, enough to power the equivalent of 7,850 homes. The solar power plant is located in Aichi prefecture. This acquisition marks CDPQ’s first co-investment with Japan’s Shizen Energy as part of a JPY 50 billion (CAD 460 million) co-investment framework announced in October 2022, when CDPQ invested JPY 20 billion (CAD 186 million) in the company to support its growth. Both partners are currently exploring further co investment opportunities within the framework of this agreement. Emmanue...

Allison McNeely and Paula Sambo of Bloomberg report AIMCo opens New York office in credit push: Alberta Investment Management Corp., one of Canada’s largest pension plans, is opening a New York office as it pushes further into private credit investing. The $164-billion pension is looking to grow its $6 billion of private credit assets by a couple of billion dollars over the next five years, chief investment officer Marlene Puffer said. Meanwhile, it’s opening a New York office to be close to many of its biggest U.S. managers. “We’re getting much more strategic about relationships with general partners,” she said. AIMCo is already active in middle-market private credit. It will focus on expanding its investments in large-cap private credit based in the U.S., aiming to do co-investments alongside fund commitments, Puffer said. AIMCo’s office at One Vanderbilt, near Grand Central Terminal, is opening with five professionals focused on private credit and one on private equity, wi...

Claude Lavoie wrote a an op-ed for the Globe and Mail stating we can all have federal workers’ ‘gold-plated’ pensions – just expand the CPP: Many people rage at (and envy) the “gold-plated” retirement plan for federal employees. Common complaints are that it’s unfair and overly generous in comparison with their own plans. But perhaps they should be asking why their plans are not as generous as the public sector’s. The CPP currently replaces 33 per cent of average lifetime income (up to a maximum), which is well below the estimated 60 per cent to 70 per cent necessary to maintain a similar standard of living in retirement. While some lower-income workers can reach this threshold through the accumulation of Old Age Security, Guaranteed Income Supplement and CPP benefits, the vast majority of workers must count on their ability and financial knowledge to invest adequately. About 75 per cent of private-sector workers do not have an employer-sponsored pension plan and, accordi...