In defence of the much-maligned DB plan

Defined benefit plans are not dead in Canada, nor should they be put to pasture
By H. Clare Pitcher
|Canadian HR Reporter|Last Updated: 05/20/2004

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ontrary to statements appearing in recent articles in the media, the workhorse of pensions — the defined benefit plan — is not dead. It has merely been resting before once again rising to prominence on the Canadian pension scene. Furthermore, while the private pension system in Canada is far from perfect, that is no reason to throw out the baby with the bath water. Rather, I suggest we keep what’s good about the current system and replace or fix what’s not.

You will always hear doom and gloom views expressed when times are tough and, make no mistake, times are tough today for pension plans in Canada with the recent prolonged investment market downturn.