In the face of large deficit burdens, volatile investment markets and generally a maturing membership, the ability for an employer to sustain its traditional defined benefit pension plan is becoming harder and harder each year. The default alternative to date has been to transition to a defined contribution design; however, changes to legislation in certain jurisdictions and the demand for retirement programs that provide certainty for retirees while being sustainable longer term has sparked interest in alternative solutions. One such solution is the Target Benefit Plan (TBP). This presentation will build off the basics of TBPs and provide strategies for the implementation of such plan designs.
Here is the agenda:
- Target Benefit Plans - One answer to sustainability
- Implementation of a Target Benefit Plan
- Legislative landscape
- Considerations and pitfalls
- A Working example