Pension de-risking through offering lump sums

Increasingly popular in the U.S., is this the right option for employers in Canada?
By Gavin Benjamin
|Canadian HR Reporter|Last Updated: 10/22/2013

In the last few years, a number of employers in the United States have moved to reduce their defined benefit (DB) pension risk by offering former employees the lump sum value of their DB pension.

This means former employees are given the option of receiving a one-time lump sum (in cash or rolled over to another retirement plan) instead of a monthly lifetime pension from the pension plan.