Concerns ease over a perceived crisis in pension plan funding, according to a new survey by the Conference Board. However, deficits remain a serious challenge for more than half of respondents.
Long-term View of Pensions Improve but Concerns Remain—Findings of the 2007 Pensions Survey
Long-term View of Pensions Improve but Concerns Remain—Findings of the 2007 Pensions Survey
Canadian Economic Analysis
People and Culture
$850.00
Two-thirds of respondents continue to believe there is a pension funding crisis in Canada, yet the percentage who think it will be long-lasting has dropped from 61 per cent in 2006 to 48 per cent in 2007 for chief financial officers, and from 67 per cent to 40 per cent for vice-presidents of human resources. Despite the improved outlook, employers are making plan design changes and converting from defined benefit (DB) to defined contribution (DC) pension plans, altering their funding and investment policies, and preparing for anticipated accounting changes. Funding deficits remain a serious challenge for more than half of respondents. Those with funding deficits in their DB pension plans are more likely to implement changes in plan design in the coming year. The most popular change is converting to DC/group registered plans for some (not all) members’ future service. Respondents strongly prefer DB plans as the best retirement saving mechanism for attracting and retaining high-performing employees.
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