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October 2006

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Defined Contribution Pension Plans:
Do They Really Reduce Risk?

Today's notable headlines could include the following: "Canada's Aging Workforce May Not Be Able to Afford Retirement." Many companies have switched from DB to DC plans, which certainly alleviate employer concerns about volatility and solvency deficits. However, are DC plans in the best interests of plan members and are they creating "hidden pensioners"?