Defined benefit pension plan sponsors worry risk becoming too great

Employers want easier funding rules and pension law harmonization across Canada
By John Hobel
|Canadian HR Reporter|Last Updated: 11/09/2005

Canada is heading towards two pension realities: strong defined benefit pension plans for public-sector workers, and defined contribution pension plans for private-sector employees. That’s if private-sector workers have a pension at all.

That’s according to Elaine Noel-Bentley, senior director of total compensation at Calgary-headquartered Petro-Canada, and a member of the board of directors of the Association of Canadian Pension Management.

The problem is that governments and regulators are making it unattractive for companies to offer DB pensions, she says. While public-sector unions can feel secure that employers won’t try to drop DB plans, plan sponsors in the private sector are looking at options.