Advice today, automation tomorrow

Two ways to get employees to save as they should
By Adam Neal
|Canadian HR Reporter|Last Updated: 09/18/2006

Pension plan sponsors have been moving toward defined contribution plans and away from defined benefit plans. While in some circles the debate continues about the merits of one system over the other, the growth in defined contribution pension and other capital accumulation plans, like group RRSPs, has revealed fundamental flaws in the system that regulates the capital accumulation plan (CAP) market.

The problems are manifest in widespread anxiety and apathy among plan members, and concern about legal protections among plan sponsors.

Recently, the Canadian Association of Pension Supervisory Authorities (CAPSA) published best practice guidelines for plan sponsors, which, while helpful, overlooked two areas for potential reform.