More calls for pension reform

Many employers faced with increased contributions to make up deficit
By David Brown
|Canadian HR Reporter|Last Updated: 07/12/2004

With most defined pension benefits plans now in deficit — to the tune of $160 billion nationally — more calls are being made for fundamental pension system reform.

Almost 60 per cent of all defined benefit pension plans have deficits, according to a study completed by the Certified General Accountants Association of Canada.

The association warned that without changes plan sponsors and members are facing a “looming social and economic crisis.” Plan members may see benefits reduced while inadequately funded pension plans run the risk of bankruptcy.