April 23, 2014 - 2:26 PM
OTTAWA - The federal government is planning more pension plan changes, this time affecting Crown corporations and federally regulated firms.
Sources say the government will announce Thursday the launch of consultations to introduce so-called target benefit plans, or shared-risk plans, to the federally regulated sector.
Analysts describe target benefit plans as a compromise between defined benefit and defined contribution plans, that adjust to take into consideration poor economic times.
The announcement is unlikely to end the criticism of Ottawa for not moving on expanding the Canada Pension Plan, an initiative led by Ontario and Prince Edward Island.
Ontario Finance Minister Charles Sousa released a report Wednesday from former Bank of Canada governor David Dodge that supports his contention that the hit to the economy of expanding CPP would be minimal and more than compensated by the long-term benefits.
News from © The Canadian Press, 2014