CANADA - Canadian defined benefit (DB) pension funds will struggle to meet future obligations to members, according to a survey by RBC Dexia Investor Services.
Eighty-nine per cent of DB plan sponsors said Canada's pension system was either "poorly positioned or average" when it came to Canada's pensions future.
RBC Dexia Financial Institutions and Client Service head of pensions Scott MacDonald said: "Whether due to recent market volatility or a lack of a unity from federal and provincial regulators, it is evident that defined benefit plan sponsors are finding it difficult to be optimistic about their ability to meet future pension obligations.
"The respondents to our survey frequently suggested the need for all stakeholders to work more closely together to help alleviate the current strain on the pension system."
In addition, 41% of respondents cited investment risk as the type of risk they are most concerned with, while 36% cited the risk of pensions not generating sufficient returns to offset obligations.
The results are based on RBC Dexia Investor Services survey of 370 Canadian pension plan sponsors from coast to coast, with pension plan assets ranging from less than C$100m (US$94.8m) to over C$1bn.
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