Bankrupt Companies and Underfunded Pension Plans
With a number of Canadian companies seeking bankruptcy protection over the past few months, it has become apparent that the defined benefit pension plans sponsored by many of these companies are underfunded. As retirees and former employees protest their shrinking pensions, many are left asking how this all happened.
In a recent interview with the CBC, Brett Ledger answers some of the typical questions that people have when such situations arise.
- What caused these plans to be underfunded?
- What responsibility does the government have with respect to these underfunded plans?
- Will individual RRSPs be sufficient to make up for losses in employer funded pension plans?
