On June 23, 2014 CARP submitted its recommendations to the Department of Finance on the proposed introduction of Target Benefit Pension Plans for federally regulated industries and public sector employers.
CARP raised concerns that Target Benefit plans might be used by federal industries and government agencies to erode current Defined Benefit pension plans. Target Benefit plans can be designed to play an important role in the workplace pension landscape, but not at the expense of existing, Defined Benefit plans.
CARP recommends that current Defined Benefit pension plans be stabilized and sustained for all current and retired plan members to ensure continued retirement income security, that Target Benefit plans be accountable to members, with risk shared by employers and employees, and that Target Benefits be limited to federally regulated industries that currently only offer Defined Contributions plan or lack pension plans.
Read the report by clicking here:CARP Submission to the Department of Finance: Target Benefit Pension Plans
Read more about Target Benefit plans here:What you should know about the newly proposed target benefit plans (TBPs)