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Target-Benefit Plans: How They Work and Why They're Worth Expanding (PDF)
C.D. Howe Institute Link to more items from this source
July 15, 2014
24 pages; focuses on Canadian law but includes analysis pertinent to the DB-vs.DC debate for U.S. public sector plans. Excerpt: "In most Canadian jurisdictions, pension laws do not currently accommodate single-employer [target benefit plans (TBPs)] ... Existing legislation generally prohibits reduction of accrued benefits outside of the multi-employer unionized environment, and a key element of TBPs is their ability to let benefits vary as a function of the funding status of the plan.... A target-benefit plan is a pension plan with the following key characteristics: [1] The contribution amounts are fixed (or variable only within a narrow, predefined range) and are generally not subject to traditional DB going concern or solvency funding standards. [2] Plan members receive a targeted defined-benefit-type pension at retirement. [and] [3] Benefits may be adjusted (both up and down) to balance the plan's funding."

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