During Benefits Canada’s annual DC Plan Summit, William Robson, president and CEO of the C.D. Howe Institute, spoke about pension reform.
An important development for DC plans is the gradual disappearance of DB plans because many of them are unable to pay their benefits in full, he said.
“A lot of people and policymakers have had the view that defined benefit is better, that defined contribution is not the way we want to see people going so there have been biases against DC plans,” explained Robson. “A DC promise is a more solid promise. And it’s appropriate for us to think about making DC plans better and stronger.”
He added that DC plan participants need to have a realistic timeframe for retirement, save more, and plan for lower returns on their investments.
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