Guaranteeing pension plans is a bad idea (Guest commentary)Legislation, regulation and litigation have brought DB pensions to the edge of a cliffBy William Robson12/05/2005|Canadian HR Reporter|Last Updated: 12/06/2005 Pension policy in Canada needs a fresh look. Defined benefit (DB) pensions are in trouble — many are underfunded and exposed to the financial stresses of their sponsors. But some proposed fixes could make matters worse. NDP leader Jack Layton has talked about pension protection as a condition for working with the Liberals. While we do not know what he has in mind, a federal pension-benefit guarantee agency — a deeper-pocketed version of Ontario’s Pension Benefits Guarantee Fund — is likely.Such an agency, like counterparts in the United States and the United Kingdom, would backstop pension plans when sponsors go bankrupt. The agency would levy premiums on the plans and pay all or part of their benefits if a sponsor failed. To Read the Full Story, Subscribe or Sign In Remember Me Forgot Password If you are a current Subscriber, please click here to set-up or update your login information.