BenefitsCanada • June 2015 / 7

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O P I N I O N S

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Drink Up! Ignore all the talk about coffee being bad for you.

Japan’s National Cancer Center

recently announced that, based on a long-term study it conducted, coffee can actually lower the risk of dying from heart disease and cerebrovascular conditions, which affect blood circulation to the brain.

Recently published in the American Journal of Clinical Nutrition, the study followed 90,914 Japanese people between the ages of 40 and 69 for 19 years, on average. When the study began, the participants had no history of cancer, cerebrovascular disease or heart conditions.

During the study, 12,874 participants died.

Researchers found participants who regularly had three to four cups of coffee a day were 24% less likely to die from health issues, 36% less likely to develop heart conditions and 43% less likely to suffer from cerebrovascular diseases.

Why is coffee good for you? Likely due to its bioactive compounds, the study says. Caffeine improves the function of blood vessels’ inner lining, chlorogenic acid lowers blood pressure, and pyridinium has antithrombotic effects.

So don’t worry about providing coffee during work meetings or taking a coffee break when you need one— but make sure your employees aren’t spending all of their time hanging around the coffee machine. And make healthy sweeteners, such as agave syrup, available so they’re not loading up on refined sugar.

HEALTH BYTE

Is your DB plan open to new hires?

10%No, it’s frozen

28%No, it’s closed Yes, it’s open to new hires 68%

Note: Figures have been rounded.Source: 90 DB plan sponsors participating in the Canadian Institutional Investment Network’s 2015 DB Survey (as of May 2015).

Survey Says...

51%Not at all likely

20%Not very likely

10%Very likely

11%Not sure

8%Somewhat likely

61% - the global engagement level for front-line employees in 2014, compared with global engagement levels of 67% for middle managers,

and 76% for executives and senior leaders — Aon Hewitt’s Trends in Global Employee Engagement study

THE MONTH IN NUMBERS

How likely is it that your DB plan will close in favour of a DC plan?

For more on the current state of Canada’s DB plans, check out our 2015 Top 100 Pension Funds Report, page 10

QuickHitsQuickHits

DC Investment Forum Oct. 8 & 9, 2015 The Ritz-Carlton Hotel, Toronto

Our 2015 DC Investment Forum brings together senior representatives from the country’s largest DC pension plans as well as leading providers. The theme is DC Investing in a Low-growth Environment.

Although hikes are on the horizon, interest rates remain low, and sluggish economic growth is expected to continue for the near term. In an environment of high volatility in equity markets and rising bond yields, what’s a DC investor to do? What investment strategies can help DC investors succeed, both in the short term and over the long term?

Topics could include:

❱ New approaches to the DC default❱ Alternatives/non-traditional investments ❱ Global DC plan design trends❱ Continuing evolution of target-date funds❱ Decumulation and DC plan members

Find more information on this and other industry events at benefitscanada.com/conferences

EVENTS Talk from our Twitter Feed

CAMH Research“Despite a high rate of #depression, older adults are 56% less likely to be diagnosed with depression.”

Bill Tufts “Imagine using surplus taxpayer money to fund roads, healthcare and infrastructure rather than gold-plated pensions.”

WorldatWork“We can pick up negativity, stress and anxiety like second-hand smoke.”

PayPeopleProperly“Remarkable leaders communicate change through conversation, not presentations.”

Bloomberg“3.5 billion euros are due to the [European Central Bank] on July 20. How long can Greece carry on?”

Achievers.com“Your employees will perform better if you give them time to disconnect.”

NOTICE OF APPOINTMENTFRANÇOIS JOSEPH POIRIER

Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company.

For more information, visit desjardinslifeinsurance.com.

VICE-PRESIDENT BUSINESS DEVELOPMENT, GROUP AND BUSINESS INSURANCE

Josée Dixon, Senior Vice-President, Group and Business Insurance of Desjardins Insurance is pleased to announce the appointment of François Joseph Poirier to the position of vice-president, Business Development, Group and Business Insurance.

François Joseph holds a Bachelor’s degree in Actuarial Science and is a Fellow of the Canadian Institute of Actuaries. He has over 20 years of experience distinguishing himself in the Group Insurance market as a consultant for frms such as Mercer and Towers Watson. François Joseph will lead our Business Development team to continue building on our strengths and expanding our presence in the group insurance market in Canada.

ABOUT DESjARDINS INSURANCE

For more than a century, Desjardins Insurance has been ofering a wide range of life and health insurance and retirement savings products to individuals, groups and businesses. As Canada’s ffth largest life and health insurer, Desjardins meets the fnancial security needs of over fve million Canadians from its ofces across the country. Desjardins Insurance is part of Desjardins Group, the country’s leading cooperative fnancial group with more than 45,000 employees.

product: Notice of AppoiNtmeNt_

poirier

size: 3.375’’ X 4.875’’

publication date: juNe 2015

publication: BeNefits cANAdA

15084E-Nomination-Poirier-Benefits-3,375x4,875-v1.indd 1 2015-04-28 16:03

41% of Canadian employees say they’ve gained weight at their current job—primarily due to sitting at a desk for most of the day — 2015 survey by CareerBuilder.ca

12% - last year’s annual increase in spending on specialty drugs in Canada — Express Scripts Canada’s 2014 Drug Trend Report

THE MONTH IN NUMBERS

Derisking With Stable Returns

“During our 33 years of servicing institutional clients, buying excellent companies at a discount has protected client capital and provided strong results.”

FOUR SIMPLE RULES = PROVEN SUCCESS

CAPITAL PRESERVATION Invest with a priority to protect clients’ capital

VALUATION Value a company from the perspective of an owner-operator

INDEPENDENT RESEARCH Find great companies with sound management at discounted valuations and attractive yields

LONG TERM PERSPECTIVE Allow the market to recognize the value in your investments

This information is not an offering of, nor advertisement for, any securities. Past performance is not a reliable indicator of future

performance and should not be relied on to make investment decisions. Lincluden’s Stable Income Equity returns ref ect the Canadian

equity component of the Lincluden Income Plus Pooled Fund and do not include cash. Comparative performance and risk characteristics

data is sourced from Mercer Manager Performance Analytics (Mercer MPA). The Lincluden series is not part of the Mercer MPA Universe

and has been included for presentation purposes only. Returns are in Canadian dollars and are gross of fees.

CONTACT: Wayne Wilson, Vice President Tel: 905.825.3543 email: wayne.wilson@lincluden.netwww.lincluden.com

LINCLUDEN ◆ SPTSX ● Median

Rate of Return for 8 Years (%) Substantially Lower Risk

Lincluden Stable Return Equity Strategy Comparison with the Pooled – Canadian Equities (PFS) universe (Percentile Ranking)

Performance characteristics vs. S&P/TSX Composite in C$ (before fees) over 8 yrs ending March 2015 (monthly calculations)

Return (%pa)

9.7 (0)

4.65.5

(75)

Standard Deviation (%pa)

10.314.5 14.6

(100)

(56)

Downside Capture %

68.4100.0098.0

(100)

(32)

9.0

10.0

8.0

6.0

5.0

4.0

7.0

3.0

2.0

◆

●

17.0

14.0

15.0

16.0

13.0

11.0

12.0

10.0 ◆

●

100.0

110.0

90.0

70.0

80.0

60.0

◆

●

9120_Lincluden_RE_June2015.indd 1 2015-06-01 8:43 PM

In response to “ORPP bill receives royal assent” (May 6, 2015)

“ Why do we, as taxpayers, want to have another mismanaged

plan administered by the same province that spent $1 billion on the gas plant fiasco and has never provided complete disclosure? [Four years ago, the Ontario Liberals cancelled the construction of two gas plants, saying the closures would cost $230 million.] Is this the same government that will manage this new pension plan?” — Anonymous

In response to “Why this U.S. doctor is moving to Canada” (May 4, 2015)

“ Americans are the most generous people, except when

it comes to the healthcare of their own people. No matter how inefficient government is, [its] inefficiency cannot add up to the profit margins built into an insured for-profit system.

I [once] got into a taxi in Houston. The driver asked [me] whether to take his daughter to the doctor because she had a fever. His concern was that it would cost him a week’s pay, and it might just be one of those fevers little kids get and then disappear. I think about that conversation every time I see a story about the U.S. healthcare system. And then I think about how happy I am [to] live in a country where my healthcare decisions are just that—healthcare decisions, not financial decisions.” — Randy Bauslaugh

In response to “Politics could shrink TFSA contribution room” (April 27, 2015)

“ Why is [the newly increased] TFSA contribution limit such

a big issue? I have a maxed-out TFSA. I have done very well with it. My current tax saving to date is $2,000. This occurred over six years. To put this in perspective, a daily Tim Hortons [coffee] over the same time span would amount to $3,200. An extremely wealthy person is limited to the same contributions as [I am]. If his tax rate is double mine, he could take a friend for coffee.” — John Russell

Our Readers Write…

To read these articles, go to benefitscanada.com/ourreaderswrite