Benefits Canada has published an article a study conducted by the Canadian Public Pension Leadership Council that show that defined benefit pensions are the best options for both Canadian employers as well as for the economy.
Highlights from the article include:
- Robert Brown, professor emeritus of actuarial sciences at the University of Waterloo: “People argue against DB plans because of their costs when, in fact, they’re the most affective and efficient form of retirement income planning. If you look at the cost net-net, investment income from these asset pools pays for 75 to 80 per cent of plan benefits, so the cost is only 12 to 12.5 per cent for contributions from the taxpayer.
- “Research from the National Institute on Retirement Security showed organizations reported noticeable productivity drops when they moved from DB to DC plans compared to employers that stuck with a DB plan.”
The defined benefit pension plan is one of the key issues in the ongoing dispute which has led MoveUP members to set up a picket line at the Westminster Savings Credit Union Shaughnessy Station branch.
The full article can be read here.