Dec 28, 2018
Osler partner Jana Steele tells Canadian Investment Review that despite upcoming enhancements to the Canada Pension Plan (CPP) and Québec Pension Plan (QPP) in 2019, she doesn’t expect defined pension (DB) plans to make changes to their integration formulas. In her article, author Yaelle Gang examines changes and trends in the pension plan landscape in 2019, including the CPP and QPP. Jana, a partner in Osler’s Pensions & Benefits Group, explains.
“We have not seen a lot of sponsors look at making changes for integration purposes,” Jana tells Canadian Investment Review. “My expectation is that we won’t.” Jana also notes that she expects “if employers are concerned about costs they’ll address this through other elements of the compensation package.”
Jana says that among trends to watch for in 2019 are “further developments for design changes and changes to delivery options.”
“I think design innovation changes will continue to be important because there’s been a lot of pressure and a lot of discussion around them,” she tells Canadian Investment Review. “Similarly, I think there will be continued interest by sponsors in new and innovative products for pension retirement savings that are offered by third-party providers, so the employer doesn’t have to act as the administrator.”
Jana also says she expects consolidation to be a key trend in 2019, “where several single-employer plans look to merge with established jointly sponsored pension plans.”
For more information, read author Yaelle Gang’s article “Trends and changes for pension plan sponsors heading into 2019” in Canadian Investment Review on December 28, 2018.