The Conference Board of Canada’s latest pension risk survey finds that concerns about pension funding remain, but worries have eased a bit.
The organization reports that two-thirds of respondents to its survey still believe there is a pension funding crisis in Canada. However, the percentage who think it will be long-lasting has dropped from 61% in 2006 to 48% in 2007 for chief financial officers, and from 67% to 40% for vice-presidents of human resources.
That said, funding deficits remain a “serious challenge” for more than half of respondents, it notes. And, as a result, many employers are still converting defined benefit plans into defined contribution plans.
Notwithstanding the appeal of DC plans from a funding perspective, the survey also finds that respondents favour DB plans as a way for attracting and retaining high-quality employees.
The survey is based on a sample of 147 respondents from 141 different organizations. The survey’s preliminary findings were released at the 2007 Pensions Summit in May.
Pension funding deficits remain serious challenge, Conference Board reports
Firms favour DB plans as a way for attracting and retaining high-quality employees
- By: James Langton
- August 24, 2007 October 31, 2019
- 10:20