Outdated Pension Funding Rules Costing Canadian Employers Billions in Overfunding
The rules for funding pension plans in Canada need to be updated. Current regulations are costly and may prevent companies from offering better benefits to employees. Some pension plans are actually overfunded, tying up money that could be used for other purposes. The gap between valuations used to assess pension funding has grown, making the rules more burdensome. In British Columbia, many plans are actually well-funded when using a different evaluation method.