News Briefs

 Pension index increased 15 per cent in 2009

Toronto —Strong returns in equity markets and climbing interest rates combined to slightly improve pension plan health in the last quarter of 2009, according to the Mercer Pension Health Index. The index increased to 74 per cent, up one per cent from the beginning of the fourth quarter. In all, the index increased from 59 per cent at the end of 2008 to 74 per cent in December 2009, a jump of 15 per cent. However, Mercer estimates more than one-half of pension plans in Canada remained less than 80-per-cent funded on a solvency basis at the end of 2009. Also, a strong Canadian dollar offset much of the return on foreign equity investments.

Canada earns an ‘A’ in education and skills

Ottawa — Canada has improved its overall education and skills performance, moving from a “B” grade last year to an “A” grade this year, according to the Conference Board’s How Canada Performs report. The comparison of 17 developed countries has Canada still ranked second behind Finland, but it has improved substantially in the proportion of high school graduates and the proportion of graduates from science, math, computer science and engineering disciplines. However, Canada needs to focus on improving access to workplace training programs, found the report. Canada should also be concerned about its adult literacy rate, since an estimated seven million adults (42 per cent of the adult population) have a low literacy level.

N.B. considers cellphone ban

Fredericton — The New Brunswick government is considering a ban on cellphones while driving. New Brunswick and Alberta are the only provinces that still allow the use of hand-held cellphones while driving. The Department of Public Safety is holding consultations on the idea of a ban and should have a report with recommendations by the summer, but any legislation would have to wait until after the Sept. 27 election.

RRSP contributions will decline until 2020: RBC

Toronto — As the Canadian population continues to age, RRSP contributions will likely continue to decline through 2020, according to an RBC Economics study. RRSP contributions, as a share of personal income, have declined over the past 11 years after steadily rising from the mid-1960s to a peak in 1997, found the report. The “bulge” of baby boomers and distinctive savings patterns of different age groups explains the majority of the growth in RRSP contributions prior to 1997 and the decline seen since, found the report. Those aged 34 and under are the least likely to make RRSP contributions, while the biggest increase in contributions occurs when individuals move into the 35-44 age group followed by a smaller rise going into the 45-55 age bracket. Contributions start to decrease after age 55.

Employers optimistic about 2010 hiring

Ottawa — Employers are feeling more optimistic about hiring in 2010, according to a Business Outlook Survey by the Bank of Canada. Over the next 12 months, 54 per cent of 100 firms surveyed in the fourth quarter of 2009 said they expect to increase the number of workers, while 14 per cent expect to decrease staff. That’s up from the third quarter, when 42 per cent expected to add employees and 15 per cent expected to cut. It’s also the most positive outlook since the first quarter of 2007, according to the Bank of Canada figures.