More than half of private sector defined benefit plan sponsors in Canada have converted their plans to defined contribution arrangements for current or future employees, according to a new report.
Global professional services firm Towers Watson, Toronto (NYSE, NASDAQ: TW), published this finding in a summary of results from a survey of senior executives at more than 150 Canadian organizations.
The 51% of plan sponsors that have switched to DC from DB plans is up from the 42% that Towers Watson recorded in 2008. The study says the trend “shows no sign of relenting.”
The survey also reveals that recent improvements in economic conditions have had “virtually no impact” on executives’ perception of a DB funding crisis. The percentage of respondents who agree that there is a pension funding crisis has remained at historic highs since the financial downturn of 2008.