Defined benefit plans declining

Report recommends government intervention to encourage employers to generously contribute to plans
By
|hrreporter.com|Last Updated: 09/16/2005

Defined benefit plans covering Canadian employees are in jeopardy unless governments change workplace pension rules, a recent report stated.

The number of plans has been steadily declining since the early 1990s when 44 per cent of the workforce was covered by defined benefit plans in 1992. In 2003, that percentage fell to 34 according to a report released by the Association of Canadian Pension Management (ACPM).

A defined benefit plan is typically considered one of the best pension plans because it guarantees its members a retirement income based on a formula related to how much a person made in his career and years of service.