April 27, 2016
The importance of rigorous oversight for employer-sponsored defined contribution (DC) pension plans is the focus of a Benefits Canada article that references a recent presentation by partner and chair of Torys’ Pensions and Employment Practice, Mitch Frazer. In the presentation, given at the April 1 Benefits and Pension Summit, Mitch points out the “fiduciary” obligation assumed by plan sponsors. Below is an excerpt of the Benefits Canada article.
It used to be that with defined benefit, “the employer bears the risk, with DC, it was employees,” said [Mitch] Frazer. “Now we know that with DB, employers [bear the risk] until a company goes insolvent and then employees bear some risk, and with DC it’s not as simple as it used to be. Now the risk is more divided up among the parties.”
To read the full article, click here.