Ottawa navigates uncharted pension territory

Feds propose voluntary target benefit retirement plans for federally regulated businesses, Crown corporations
By Sabrina Nanji
|Canadian Labour Reporter|Last Updated: 05/12/2014

Of late, the chatter surrounding pension reform has been nothing short of contentious. The ever-raging defined benefit (DB) versus defined contribution (DC) rubric — as well as sustainability and predictability — has left key players across the labour field up in arms.

At the end of April, the federal government doused this blazing pension fire with gasoline. The finance department announced the launch of a target benefit pension plan framework, and opened up a 60-day consultation period to the public.

As part of the proposal, target benefit plans, otherwise dubbed shared-risk plans, would be made available as a voluntary option for employees in the federally regulated private sector and Crown corporations.