Myth : Defined Benefit Plans are “Guaranteed”. The answer is “nothing”.


Extrait de: Myth #4: Defined Benefit Plans are “Guaranteed”, By Jana Steele and Ian McSweeney, Canada Pensions & Benefits Law, Target Benefit Plans, November 26th, 2014

In this final post of our series on the myths surrounding target benefit plans (TBP) and defined benefit (DB) plans, we address probably one of the biggest myths surrounding DB plans – that their benefits are guaranteed.

What is truly guaranteed in life other than death and taxes?

The answer is “nothing”.

The traditional DB pension plan – where the employer “guarantees” the pension benefits – may not be sustainable in some public and private sector cases and could lead to crisis situations that TBPs could help avoid.

Generous DB plans may, in adverse circumstances, put both the members and the employer at risk.

There have been many high profile instances over the last decade or so where the pension solvency issues threatened the continued operation of an organization. And, there have been other high profile instances where a company has gone under and pensions have been permanently reduced.

Ultimately, the so called “guarantee” comes down to the employer’s willingness and ability to pay.


  1. gravatar

    # by Anonyme - 29 décembre 2014 à 13 h 17


    Pourquoi Québec droite, ça donne l'impression que droite = bonne n'y a pourtant aucun lien. Les républicains, les conservateurs sont l'inverse d'une bonne gestion et pourtant à droite.
    Les pays scandinaves sont bien gérés avec beaucoup plus de caractéristique de la gauche, scolarité, santé, soutient sociale. La solution est dans la bonne gestion, l'honnêteté et la solidarité qui ne sont pas les vertus d'une vision gauche ou droite.