SWF Institute
October 28, 2013

It seems that Doug Pearce, exiting CEO of the British Columbia Investment Management Corporation (bcIMC), has been vindicated for his belief in the economic benefit of defined benefit (DB) plans to the Canadian economy.

In a recently released report that was commissioned by a group of Canadian defined benefit pension plans and carried out by the Boston Consulting Group (BCG), suggests that pensioners receiving retirement benefits are less likely to rely on government assistance in old age than their defined contribution counterparts.

The report states that 10-15% of DB beneficiaries will make use of the government’s Guaranteed Income Supplement (GIS) compared to 40-45% of retirees that aren’t beneficiaries of a DB plan.