While there are nuances, I consider a target-benefit plan to be one that determines benefits to members on a defined benefit basis while setting out employer contributions on a defined contribution basis. To allow for that mix, target-benefit plans permit benefit reductions when contributions fall short. My goal is to share what I consider an […]
As we celebrate Benefits Canada’s 40th anniversary, it’s a good time to look ahead to the next 40 years. Looking ahead, I see the inevitable trend of health benefits moving to a defined contribution approach from a defined benefit one. I expect the trend to mirror the developments in the pension area over the last […]
Over the years, a growing chorus of voices has been pleading with the provinces to lighten up on the overburden of pension regulation and give employers a fighting chance to provide a DB promise. Unfortunately, the province didn’t listen—which hasn’t been great for many DB plan members, because the punitive regulatory system has put the majority of private sector DB plans out of business.
Last month, the Ontario government presented its budget that included the Ontario Retirement Pension Plan (ORPP). I don’t have all the details, not because I didn’t look, but because the leaders in our government don’t have all the details to offer at this stage. Apparently it is their strategy is to tell you they are doing something and then leave some room to figure out the details later.
CPP expansion doesn’t solve the problem that we have today, and it may not solve a problem that we may not have in 40 years.