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Monsanto Supreme Court of Canada Decision

The CIA believes a healthy retirement income system provides for both defined benefit (DB) and defined contribution (DC) pension plans.

DB plans form part of a key pillar of Canada's retirement income system - private, tax-assisted savings. In recent years, however, several factors have combined to threaten the continuing existence of these plans, and trends in the market suggest a shift from DB to DC plans. One of the most significant factors is the Monsanto decision, which has serious implications for the future of DB plans in Canada. This decision could lead employers to under-fund plans in order to avoid surpluses.

In order to initiate a comprehensive debate over safeguarding the future of DB plans as part of a balanced system, the CIA has produced a 10-point “Prescription for Canada’s Ailing Pension System” and has advocated for the reforms contained in the prescription with governments across the country. As well, the Institute has produced other documents, including “Retooling Canada’s Ailing Pension System Now, for the Future”, and, “White Paper on Government-Facilitated Retirement Income Plans” and is advocating with governments to further the debate.