Knowledge & Insights
Toronto Star: A ‘defined benefits’ pension plan offers significant advantages over the increasingly common ‘defined contribution’ plan.
Benefits & Pension Monitor News: The Financial Institutions Commission of British Columbia (FICOM) has clarified the requirement for union consent when a plan provision is converted to a target benefit provision, says a Morneau Shepell "...
Benefits Canada: The target benefit plan (TBP) concept continues to evolve in Canada as DB plan sponsors confront funding issues and DC plan sponsors worry about the significant investment risk on the shoulders of individual employees...
New Brunswick’s shared-risk model for pension plans has received the highest grade from the American Academy of Actuaries.
At the best of times, making changes to a DB pension plan is a task, as sponsors try to balance business constraints with funding and risk concerns. But throw a union into the mix and the process becomes even more difficult.
Future boards will know the rules and what to do when shared risk plans are in deficit or surplus situations and that is one of the key advantages, says Steve Mahoney, partner, asset and risk management, at Morneau Shepell.
Unions are generally opposed to target benefit plans, a newish pension vehicle that looks like a defined benefit plan but strips away the guarantee.
Target benefit plans (TBPs) have been making significant inroads in the public sector of late, more so than most of us realize.
The pension landscape needs innovative ideas. Pension coverage and adequacy are tough issues facing Canadians, and the current defined-benefit and defined-contribution models do not fully fit the bill.
Morneau Shepell has launched a website focusing on the sustainability of Canadian pension plans.