Strength in Diversity: What We Can Learn from BC’s Target-benefit Plans
By Barry Gros
With the significant decline in single-employer defined-benefit (DB) pension plans in the private sector, it’s important to understand other alternatives. One such alternative is the target-benefit plan.
The regulation of target-benefit plans (TBPs) in all provinces across Canada can be made more straightforward and effective using lessons learned from real-life experiences. With target-benefit plans currently being more prominent in the province of British Columbia than any other province, it is useful to take a closer look at these plans to see what we can learn from them.
This study found a diverse group of plans, with their heterogeneity having clear policy implications for their regulation. For these TBPs to effectively serve their members, they need objective-based and clear regulations that reflect their nature and how they are managed.
Source SSRN
