Greater flexibility for funding a priority to DB Pension Reform: Aon Survey

Survey also notes resolution to surplus ownership/asymmetry and increase in uniformity of pension rules among top items that need to be addressed

TORONTO, April 23 /CNW/ - Aon Consulting Canada today issued results of its Rapid Ready survey (www.aon.ca/pubs/rdy/pension-410.pdf) in which the highest average response (4 out of 5) from 125 participants confirmed providing greater flexibility for funding to defined benefits (DB) as the most important area that needs to be addressed in upcoming discussions on reform to the Canadian pension standards.

On a scale from 1 to 5 (1 being least and 5 being most important), participants were asked to rate the importance of seven key items the firm had identified surrounding pension reform.

Of the six other items and in descending order of importance, results show the following rankings:

    
    -  Resolving surplus ownership/asymmetry (3.9)
    -  Increasing uniformity of pension rules (3.6)
    -  Allowing greater flexibility regarding design (3.5)
    -  Tightening funding rules (2.9)
    -  Expanding member disclosure (2.7)
    -  Expanding government pension guarantee programs (2.6).
    

"The results of our survey reinforce what's been heard from many employers in various consultative forums," notes Barry Gros, vice president, Retirement, in the firm's Toronto office.

"As it currently operates, the two-tailed funding framework of going concern and solvency valuations has fallen short of delivering security for members and flexibility for employers to manage their business during economic volatility. This is an area that needs fresh perspectives and solutions that go beyond a series of temporary funding relief measures."

About Aon Consulting Canada

Aon Consulting is one of Canada's leading integrated human capital consulting and outsourcing firms. Our more than 800 Canadian professionals in 12 offices coast-to-coast offer benefits, talent management and rewards strategies and solutions to help clients attract, retain and develop world-class talent. Driven by inspired and independent thinking, Aon Consulting is committed to delivering innovative and personalized business solutions with tangible value to help clients shape their organization into the workplace of the future. For more information, visit http://aon.ca.

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