Home Page > Advocacy > Public Positions > Defined Benefit Pension Plans

Advocacy

Public Positions

Defined Benefit Pension Plans

The CIA has long believed that 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. This is unfortunate, given that DB plans have the benefit of providing some certainty as to the benefits that will be provided to plan members.

In order to initiate a comprehensive debate over safeguarding the future of DB plans as part of a balanced system, the CIA is working to bring together stakeholders in a healthy pension system to examine the issues surrounding them and consider options for reform. This effort should examine issues around risk sharing, governance, plan design and policy in respect of DB plans.