Brent Simmons shares his views in a Globe and Mail article on why the risky strategies used by DB pension plans for the past 20 years have destroyed shareholder value for many Canadian companies and are no longer appropriate in today’s economic environment.
Key points:
- Over the past 20 years, the traditional DB pension strategy hasn’t worked for private sector companies. Companies have contributed $158 billion from 1999 to 2018 to shore up pension deficits (Statistics Canada).
- There is a better path forward for DB pension plans. Forward thinking companies are realizing they should take risk in their core business, not their pension plan.
- There are opportunities for Canadian companies to manage their pensions more effectively and embrace risk management
