Companies keen to offload responsibility of DB plans

Biggest stumbling block is many unsure how it would work
||Last Updated: 12/20/2007

Canadian organizations with closed defined-benefit (DB) pension plans are keen to offload the responsibility for these plans, according to a new survey.

Of 113 employers queried by Morneau Sobeco, 55 per cent have closed their DB plans to new hires or plan to do so in the near future. And among these, two-thirds (67 per cent) indicate they are interested in offloading the management of the plan to a third party.

“Employers are more likely to offload a closed DB plan to a third party than a plan that is still a going-concern,” says Fred Vettese, chief actuary of Morneau Sobeco in Toronto.