Pension crisis has CFOs reviewing plan design

In response to declining funds, some firms are reviewing pension plan design and reducing benefits
By David Brown
|Canadian HR Reporter|Last Updated: 11/18/2004

Most Canadian pension plans are in “crisis,” creating such financial headaches that chief financial officers are demanding plans be reviewed and in some cases changed, according to a new study.

Of the 68 CFOs surveyed by Watson Wyatt and the Conference Board of Canada, 40 (59 per cent) said there is a pension crisis. Most of those (39 per cent) said the crisis is a result of cyclical factors, with the remaining 20 per cent believing the crisis will last beyond the next few years.

Slumping stock markets since 2000 have left many pension plans in a deficit position without enough assets to cover projected liabilities.