Managing a pension plan involves balancing competing priorities: ensuring adequate funding, meeting regulatory requirements, and providing secure benefits for retirees. Rennford partners with employers to navigate these challenges.

Many employers are seeking to reduce the risks associated with defined benefit pension plans. Rennford offers de-risking solutions, including:

Buy-in Annuities: Transfer investment and longevity risk to an insurer while maintaining plan assets.
Buy-out Annuities: Transfer the full pension obligation to an insurer, removing the liability from the plan sponsor's balance sheet.

With evolving regulatory frameworks—including Ontario's new framework for target benefit multi-employer pension plans (MEPPs), effective January 1, 2025—effective plan governance has never been more important. Rennford provides:

● Governance Framework Support: Guidance on meeting regulatory requirements.
● Risk Management: Strategies to promote plan sustainability and long-term resiliency.
● Compliance Monitoring: Ongoing support to ensure your plan remains compliant.

In a competitive labour market, offering a strong retirement savings plan is essential for attracting and retaining talent. Rennford supports employers with:

● Group RRSPs: Flexible, tax-efficient savings for employees.
● Defined Contribution Pension Plans: Predictable costs for employers, portable benefits for employees.
● Pooled Registered Pension Plans (PRPPs): Accessible retirement savings for small and medium-sized businesses.

Canada Pension Plan (CPP) Enhancement

The Canada Pension Plan has undergone a phased enhancement designed to increase retirement income for Canadians. Key changes for 2025 include:

● Increased Income Replacement Rate: The CPP now replaces one-third (33.33%) of pensionable earnings, up from one-quarter (25%).
● Higher Maximum Pensionable Earnings (YMPE): The YMPE has risen to $71,300 in 2025.
● Increased Contributions: Employee and employer contribution rates remain at 5.95%, with a maximum contribution of $4,034.10 each.

These enhancements mean that future Canadian retirees who earn at least $71,300 annually can maximize their base CPP benefits. Understanding how to incorporate CPP into your overall retirement strategy is essential.

If you have left an employer, you may have a locked-in pension account that needs attention. Rennford helps individuals:

● Transfer Pension Funds: Move pension assets into a Locked-In Retirement Account (LIRA) or Life Income Fund (LIF).
● Consolidate Accounts: Simplify your finances by combining multiple pension accounts.
● Optimize Decumulation: Develop a strategy for turning pension assets into sustainable retirement income.

The Ontario government has released a consultation document on variable life benefits — an emerging option that provides flexible, investment-linked retirement income. Rennford is closely monitoring this development and will offer solutions as the regulatory landscape evolves.