Quebec pension bill draws employer ire

Changes would prompt eight in 10 sponsors to back away from DB: poll
By Uyen Vu
|Canadian HR Reporter|Last Updated: 11/01/2006

Employers in Quebec are vigorously opposing a proposed pension bill that contains several measures not seen anywhere else in Canada.

These include a requirement for sponsors to build a reserve fund if a plan is less than 100-per-cent solvent, a provision for future retirees to have their pensions insured and an allowance for any interested party to object to amendments by referring the matter to an arbitrator.

In a survey of sponsors of 120 defined benefit (DB) pension plans conducted by Mercer Human Resource Consulting, eight in 10 said if the bill passes as is, it will encourage them to replace DB pension plans with defined contribution plans.