HR losing grip on pension responsibility

Finance playing larger role than HR in management of DB pension plans
By Angela Scappatura
|Canadian HR Reporter|Last Updated: 05/19/2009

The financial crisis has led companies to shift pension responsibility from human resources to finance in an effort to manage the market volatility affecting defined benefit (DB) plans, says Toronto-based actuary Kevin Tighe.

“The financial crisis has caused these plans to create a huge burden on many companies, so now the volatility and the cost of these plans is much more apparent to the plan sponsors,” says Tighe, a retirement practice leader at Watson Wyatt.

The number of Canadian executives and organizations that believe finance plays a greater role in pension management has more than doubled in the past five years to 65 per cent, according to a survey from Watson Wyatt. A total of 161 senior executives and 156 companies participated in the survey.