The Liberal government's Minister of Finance, Bill Morneau, tabled a bill this week that would allow Crown corporations and federal private-sector employers to back out of defined-benefit entitlements they agree to.
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|For those retired and working employees who could be impacted by the change, their retirement benefits could be drastically reduced even though they have paid into the plans for years and budgeted on the basis of what they expected to receive when they retire. Defined Benefit plans require employees to give employees a monthly payment regardless of their investment returns. Accrued benefits are legally protected and cannot be clawed back. While such plans are not as cheap as alternatives such as Defined Contribution plans, they offer workers greater retirement security.|