Finding middle ground for Canada’s pension plans

Panel debates pros and cons of Bill C-27 and target benefit plans
By Marcel Vander Wier
|Canadian HR Reporter|Last Updated: 01/02/2018
Bill Morneau
Finance Minister Bill Morneau has been in the spotlight recently with suggestions of a conflict of interest as the implementation of target benefit plans could benefit his former firm, Morneau Shepell. Credit: Chris Wattie (Reuters)

With Canadian employers continuing to shift away from defined benefit (DB) pension plans, Bill C-27, An Act to Amend the Pension Benefits Standards Act, is looking to establish a framework for target benefit pensions in the federal private sector and Crown corporations.

If put into law, the bill would allow banks, airlines and telecommunication companies to establish target benefit plans, as well as permit the conversion of DB plans to the target benefit option.

The world of pensions is shifting and needs to be addressed, said Lynn Hemmings, senior chief of the financial sector policy branch of the Department of Finance Canada.