By

In reaction to policy in some provincial capitols to ease solvency funding requirements, Canadian defined benefit plans have started to adapt their funding strategies, writes Rick Baert for Pensions & Investments.
According to Aon Hewitt’s biennial pension risk survey of 124 plans with total assets of C$350 billion, “41 per cent of plans in Quebec, 33 per cent in Ontario and 27 per cent  in western Canada — predominantly British Columbia and Alberta — have made changes to their funding strategy in the past two years,” he writes.
“Those funding strategy changes typically involved reducing their minimum funding requirements and moving to more shared risk between sponsors and plan participants, particularly among public plans, said Tom Ault, partner, risk settlement and longevity consulting leader at Aon Hewitt, in an interview,” he continues, adding the “survey showed 44 per cent of public plans expected to increase the use of shared risk compared with 22 per cent of corporate plans.”
More: Changes the result of provincial legislation.

ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans – ARIA pensions blog, 12 Dunlop Street, Barrie, ON, L4N 1V6 – sitemanager@ariapensions.ca

About the Author

Hi. I am an experienced writer, editor, blogger and communications strategist, providing online and print content solutions