As a result, there are no one-size-fits-all solutions from state to state or even from plan to plan to ensure that pension plans
are properly financed and effectively managed to pay benefits for the long-term.
The investment ceiling on the total amount of risky assets will be eased from 40 percent to 70 percent for the defined contribution pension plans
and the individual retirement pension plans
, and investment restrictions on individual risky assets will be lifted.
The private sector has been asking for solutions that help them deal with some of the challenges associated with an employer s ability to offer pension plans
, said President of Treasury Board and Minister of Finance Doug Horner.
But the board is taking steps to bring all pension plans
to full funding over 20 years, she added.
The finance minister of Canada has called for the establishment of a private pension plan
in the nation.
Clearly there's a move away from defined pension plans
and we're just following suit.
Companies with under-funded pension plans
are prevented from promising extra benefits to employees without paying for those promises up front.
In the act, Congress has addressed what many perceive to be the two main problems facing pension plans
: the dramatic underfunding of the trusts established by employers to pay pension plan
benefits; and the lack of options available to employers of existing pension plans
who determine that they can no longer afford to maintain their plans under the existing rules.
filed for bankruptcy and the company's pension plan
was turned over to the Pension Benefit Guaranty Corp.
A Conference Board Executive Action briefing, The Pension Plan
Crisis: Canada's CFOs Are Worried-With Good Reason, outlines many questions facing governments and plan sponsors, and proposes possible solutions.
In its efforts to keep costs down, the regulator is insisting that underfunded pension plans
be restored to financial health much more swiftly than in the past.
All pension plans
must meet certain ERISA documentation requirements, including: