In 2011, the Ontario government announced measures offering temporary solvency relief for eligible public sector pension plans that are less than 90% funded. A number of Ontario universities have already signed on for relief, and other plans—both public and private—can learn from their experience in the fight for sustainability.
DB pension plans carry many types of risk including investment risk, asset-liability mismatch, longevity risk, demographic risk and inflation risk, and this puts smaller plans at a disadvantage. Because of their smaller asset base, it’s difficult to diversify the investment risk among many different asset classes like larger plans can do. At the same time, […]