An Update on the Funding Status of Defined-Benefit Pension Plans in Canada
نویسنده
چکیده
ince 2000, the funding adequacy of defined-benefit (DB) pension plans in Canada and in other industrial economies has deteriorated, largely reflecting financial market developments that have adversely affected both pension fund assets and liabilities. Unfunded pension obligations can affect the financial position of the sponsoring corporation or government entity, representing a potential drain on cash flow through the need to make special contributions. At a minimum, this represents a financial burden and, under extreme scenarios, can have adverse consequences for the financial system, as well as for the sponsor and its employees.
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