For 2013, employers with a company pension plan are looking to reduce costs and establish realistic scenarios, according to a survey by Morneau Shepell.
For sponsors of defined benefit pension (DB) plans, the key priority for 2013 is to rein in escalating pension costs, found Morneau Shepell’s Trends and Projections survey which polled 250 employers across the country.
Although interest rates are at historical lows, employers are implementing liability-driven, investing strategies. And as a response to exploding pension costs, employers are looking into all available alternatives to modify pension cost-sharing and risk, found the survey.
For sponsors of defined contribution (DC) plans, the trend is to establish a realistic retirement income scenario.
In addition to retirement income calculators and other decision tools, a personalized scenario is presented to participants to bring about necessary adjustments to their retirement savings strategy, said Morneau Shepell.
© Copyright Canadian HR Reporter, Thomson Reuters Canada Limited. All rights reserved.