Press Releases

April 24, 2014

Eckler welcomes federal target benefit plan announcement

TORONTO, ON – April 24, 2014 – Eckler Ltd. welcomes today’s announcement by Minister of State for Finance Kevin Sorenson introducing a proposed federal framework for target benefit plans (TBP). The framework would offer private sector employers and Crown corporations in federally regulated industries the option to adopt a TBP based on the shared-risk pension plan model already in place in New Brunswick.

The framework document suggests that allowing industries governed by the Pension Benefits Standards Act, 1985 to create or convert to a TBP would help interested stakeholders:

  • enhance pension sustainability through innovative risk-sharing arrangements; and
  • improve pension adequacy for Canadians.

Eckler plans to lend its expertise to the shaping of this important framework, by making a submission during the 60-day consultation period focusing on key issues including:

  • how TBPs should be funded;
  • how existing plan obligations should be converted to TBP arrangements; and
  • how shared-risk governance should be structured for TBPs in non-union environments.

“Eckler has been providing advice on target benefit plans for more than six decades under the multi-employer pension plan model pioneered in Canada by our founder, Sam Eckler,” says Ian Edelist, Eckler Principal and pension practice leader in Toronto. “We look forward to contributing to the development and growth of shared-risk pension plans for federally regulated stakeholders at a time when pension coverage continues to decline for Canadians.”

 

About Eckler Ltd. 

Eckler Ltd. is a leading consulting and actuarial firm with offices across Canada and the Caribbean. Owned and operated by its active Principals, the company has earned a reputation for service continuity and high professional standards. Our select group of advisers offers excellence in a wide range of areas, including financial services, pensions, benefits, communication, investment management, pension administration, change management and technology. Eckler Ltd. is also a founding member of Abelica Global – an international alliance of independent actuarial and consulting firms operating in over 20 countries. Visit eckler.ca for more information.