August 18, 2014
Partner Mitch Frazer was sought for comment in a Law Times article on how public and private organizations have responded broadly to changes in the economy with respect to pension strategies. Below is an excerpt of the article.
As weak markets following the credit crisis of 2007-08 created huge pension deficits relating to future liabilities, both governments and employers began seeking alternatives to volatile defined-benefit pension obligations.
One way of doing that involves the conversion of traditional defined-benefit plans into the Dutch model of shared-risk plans with targeted benefits.
“The concept is simple, envisaging a shifting of some of the risks while preserving guaranteed benefits within a specific range,” says Mitch Frazer of Torys LLP’s Toronto office.
The difficulty, however, is that most pension standards legislation in Canada doesn’t accommodate single-employer target-benefit plans.
To read the full article, click here.