The winners are high-flying employees who are likely to enjoy pensions that, at retirement, exceed the value of accumulated employee and employer contributions
Defined-Benefit Public Sector Pension Plans: Who Wins and Who Loses?
The payout formulas for defined-benefit (DB) pension plans, such as those typically provided to government employees across Canada, produce little-acknowledged yet striking inequities, according to a report from the C.D. Howe Institute. In "Winners and Losers: The Inequities within Government-Sector, Defined-Benefit Pension Plans," Geoffrey Young shows how plan formulas can produce redistribution of retirement income among members and recommends potential reforms.
