Members of pension plans can now turn to an objective source of information to help them learn more about their pensions.

Focus On…Pension Decisions, found on the Investor Education Fund’s Web site www.investorED.ca, provides members of pension plans with plain language, unbiased information about employee savings plans.

It explores and illustrates, through case studies and scenarios, the long-term affect certain decisions can have on future retirement income.

“Very often a person’s pension plan is their largest asset,” says Terri Williams, president of the Investor Education Fund. “Focus On…Pension Decisions is a new source of information that helps employees understand the importance of their pension plan decisions.”

While the ins and outs of Defined Benefit plans are explained, the new feature is aimed at helping members of Defined Contribution (DC) Plans and Group RRSPs make appropriate investing decisions. In these types of plans, employees are often given the responsibility for making investment choices.

Research conducted by the Investor Education Fund entitled “An Analysis of Trends in Defined Contribution Market in Canada” shows membership in DC plans is growing. The number of plan members has doubled in the past decade. This growth, combined with a higher number of investment choices offered to plan members, is increasing the need for these employees to become educated investors.

In particular, the Investor Education Fund is hoping to assist smaller companies with their employee investor education programs. Its research shows that due to limited human and financial resources, employees of smaller companies are less likely to have access to educational resources — and 87% of pension assets of small companies are in DC plans.

The Investor Education Fund is pro-actively alerting small companies to the availability of this material. Small employers who have reviewed the information believe it will help their workers learn more about their pensions and the decisions involved.