DB plan trades off top rates

New multiplier benefits all plan participants
By Gordon Sova
|Canadian Labour Reporter|Last Updated: 07/18/2011

The workers of Koyo Bearings Canada in Bedford, Quebec have made an interesting decision involving their defined-benefit pension plan.

They were faced, as so many pension plan participants are, with an underfunded plan.

The previous benefit level for the plan had increased the monthly multiplier to $36, but only for service from March 2010. Past service before June 2008 attracted a benefit of $30 per month per year of service. The minimum pension benefit was just $5.00 per month per year for all years of service.