How the CMHC closed its DC pension and returned to a DB plan.
PBI Senior Consultant Riley St. Jacques was quoted in an article on how Canada Mortgage and Housing Corp. (CMHC) is re-opening the defined benefit (DB) plan after having previously closed its defined DB plan to new members and introduced a defined contribution (DC) component to all employees.
With employers much more likely to be closing their DB pensions these days, the CMHC is bucking the trend, says Riley St. Jacques, a partner and senior consultant at PBI Actuarial Consultants Ltd. “I would take this as really good news. Certainly, defined benefits are, in our opinion, the best type of structure to provide adequate income to all groups over defined contribution plans, but there are challenges around that. With the proper structure, hopefully, they can provide that better benefit for members and have that shift back.”
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