New Edition of Seeing Beyond Risk Explores the Most Effective and Efficient Means of Delivering Retirement Income


The latest issue of Seeing Beyond Risk, the quarterly electronic publication, is now available on the CIA website. Each issue features contributions from well-known names in actuarial science and experts in the field, writing about topics suggested and honed by the CIA Editorial Panel, readers, and Institute members.

This issue features an article from Robert L. Brown, FCIA, FSA, ACAS, who compares the benefits and disadvantages of defined benefit (DB) and defined contribution (DC) plans. Many employers have backed away from DB plans because of perceived costliness due in part to increased longevity and low rates of investment return. In turn, DC plans including Registered Retirement Savings Plans (RRSPs) have faced several crises, also due to increased life expectancy and lower rates of return.

Mr. Brown concludes that pooled target benefit pension plans (PTBPPs) offer a pension model that mitigates the risks of DB and DC plans so that employers/sponsors and workers end up with most of the advantages of both types of plans. For the plan employer-sponsor, a PTBPP is a DC plan, since the employer-sponsor’s responsibilities end when the stipulated contribution is made. For the worker, a PTBPP is a DB plan, but the benefit is not guaranteed.

We are sure you will find this article informative and thought-provoking, and we encourage you to distribute it among your friends and colleagues.

Canadian Institute of Actuaries/Institut canadien des actuaires