“I’m in a Defined Benefit Pension Plan, What Should I Do?” — Part 2

Employee Pension Plan

Last month we talked about the precarious position that former employees of Sears Canada are in relative to their pensions — a scenario that none of us would wish upon even our worst enemies. The reality is that there are other Defined Benefit pension plans in Canada in deficit positions. And, this could get worse as the population ages. More so if interest rates stay within an historically low range in the years ahead. So, what should you as an employee be doing? First, learn as much about your employer pension plan as possible. If it’s a private Defined Benefit plan — as opposed to a plan for government employees — where you’re promised a specific monthly income on retirement, determine if it’s fully funded or whether your employer is […]

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“I’m in a Defined Benefit Pension Plan. What should I do?” – Part 1

Defined Benefit Plan

I passed a Sears store in Arizona this week and it really irked me. Thinking about the thousands of ex- employees and retirees in Canada who were blindsided by the closing of Sears Canada, and the pension benefits lost after so many years of dedicating their lives to their employer. It’s a shame that our legislation in Canada wasn’t strong enough to prevent the losses that are so personal to so many. A quick look at CARP’s website this week (www.carp.ca/advocacy-priorities) reminded us of the need to support their “Put Pensioners First” campaign. Only 20,718 “supporters” have signed up to date, but every Canadian in a private Defined Benefit (“DB pension plan”) should be doing just that. Asking our Provincial governments to include or strengthen pension guarantees and our Federal […]

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