New pension paradigm needed to better serve employees: Report

‘Policies encouraging larger, collective pooled pension plans governed by independent management boards are the way forward,’ says expert
By Marcel Vander Wier
|Canadian HR Reporter|Last Updated: 08/13/2019
Putting Green
Canadians continue to find it difficult to save for retirement, and worry about post-retirement savings, according to 
a 2018 survey of 1,003 workers conducted by AON. Credit: Flamingo Images (Shutterstock)

The time is right for Canada to adopt a pension model that serves the workforce more appropriately, according to a report by the C.D. Howe Institute in Toronto.

“The Canadian pension system is failing,” said Stephen Eadie, report co-author and partner at Robertson, Eadie and Associates in Oakville, Ont. “It’s been dying for a while and we’re having the funeral soon.”

With traditional pension models largely falling short of their goals, the industry must focus intently on the framework of the future, according to The Great Pension Debate: Finding Common Ground. At present, pension discussions continue to be divided into two camps — defined benefit (DB) and defined contribution (DC), said Eadie.