Jordan Fremont Quoted in Benefits Canada on the Target-Benefits Pension Bill
Benefits Canada quoted Hicks Morley’s Jordan Fremont in an October 10, 2017 article titled “Can the Feds Overcome Labour Opposition to Pass Target-Benefit Pension Bill?”
Bill C-27 would allow federally regulated employers to offer target-benefit pension plans to create a wider range of options. Awaiting its second reading in the House of Commons, the timing of the agenda is said to provide an opportunity for input from various parties. “The government appears to be open to consultations that may include public hearings of some kind,” Jordan said.
The article outlines three common myths about target-benefit plans including the myth that target-benefit plans necessarily involve more risk and uncertainty for employees and pensioners (compared to defined benefit plans), to which Jordan notes, “the extent to which [defined benefits] are guaranteed ultimately depends on the wherewithal of the funds and, where the fund isn’t sufficient, the financial stability of the sponsor.”