The CAAT Pension Plan advocates strongly for the use of defined benefit (DB) pension plans in a recent white paper, entitled Better Pensions Needed to Create a Better Canada. They say providing lifetime retirement income plans can help employers attract and retain talent.
The report is an analysis of recent survey results released by the Canadian Public Pension Leadership Council, a group of public sector senior administrators from across Canada who work to inform public discussions about retirement and income security.
“The paper highlights the pivotal role employers play in improving retirement income security for Canadians,” says Derek Dobson, CEO and plan manager with CAAT. The company says the majority of Canadians, 55 per cent, want employers to match their contributions. When survey respondents describe other plan attributes they value, they essentially describe qualities typically associated with DB plans.
“Organizations that offer lifetime retirement income plans can support the long-term financial wellness of employees and gain a competitive edge in attracting and retaining top-tiered talent,” the report’s researchers write. “While the qualities of defined benefit pensions are most desirable, more than half of Canadians ages 18 to 24 (55 per cent) would switch employers for any pension plan at all.”
They add that every $10 paid into a public pension benefit plan generates $16.72 in downstream economic benefits. They also note that the average Canadian worker who is financially stressed spends about 30 minutes each workday thinking about their finances.
“Emerging research on the perceptions of retirement among working Canadians reveals that the majority want employer-sponsored retirement income security,” the report states. “Employers need to prepare for the marathon of talent.”
