Cracks appear in public-sector pension plansBumpy road ahead for some of the biggest DB plans in CanadaBy Uyen Vu02/27/2006|Canadian HR Reporter|Last Updated: 02/28/2006 Public-sector workers may take comfort in knowing their defined-benefit pension plans are unlikely to be converted any time soon, but that doesn’t mean they’re spared the worries of unfunded liabilities that DB plans across the board are facing.“The big concern (these plans) all should have is how expensive they’re going to get,” said Malcolm Hamilton, principal of Mercer Human Resources Consulting in Toronto. “They’re very expensive in terms of large benefits, (cost-of-living) indexing and early retirement. And we’re now in an environment of low real interest rates and high security prices which means we have reason to believe that returns aren’t going to be like they have been in the last 20 years.” The result is increasing pressure for increases in contribution and reductions in benefits. Hamilton said that’s already happening. 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.