As policy-makers across the country implement pension reform and address priorities, we wanted to highlight a few of the recent reforms impacting private sector registered pension plans that, in our view, are positive steps, warranting consideration in other jurisdictions.
DB plan sponsors in Alberta (and soon British Columbia) should carefully consider taking advantage of recent and forthcoming) legislation in those provinces permitting them to establish solvency reserve accounts (SRAs) as an effective way of funding their plans and avoiding the much dreaded “trapped capital” concerns that have often undermined plan security over the last several decades.
In our last post, we looked at two of the myths surrounding target benefit plans (TBPs). This time, we look at myths involving unions’ opposition to TBPs and the DB "guarantee."
Before getting started on the myths, it’s important to understand what target benefit plans (TBPs) are and how they differ from (but also share) the attributes of DB and DC plans.