Jordan Fremont Quoted in Benefits Canada on DC Pension Decumulation Offerings
The 2018 July/August edition of Benefits Canada quoted Hicks Morley’s Jordan Fremont in an article titled “The Long Journey to Safety.”
Even as regulators move to expand decumulation options for Canadians in defined contribution pension plans, the degree to which employers will actually adopt the solutions available, including variable benefits, remains an open question. Various factors fuel the conundrum, but exposure to liability and litigation risk loom as perhaps the most daunting obstacles.
Safe harbour provisions, Fremont suggests, could help alleviate employers’ concerns and break down the barriers to adopting internal decumulation options. “While the [federal act] doesn’t use the term safe harbour, the legislation is, in fact, about managing risks and returns in plans that offer investment choices,” says Fremont. “The problem is that the legislation doesn’t address other aspects of an administrator’s responsibilities, including giving advice, disclosure, education and other issues.”