Deferred Compensation and Organizational Productivity

Abstract

As the Canadian labor market continues to undergo structural changes, an increasingly greater premium will be placed on a flexible, adaptable work force. Occupational pensions that contemplate longterm risk sharing between the parties will be a disadvantage to employees in such circumstances, increasing the importance of the other retirement saving vehicles whose benefit structure is not tied to the organization, such as defined-contribution pension plans and registered retirement savings plans. Over the past decade, while registered retirement savings plans (RRSPs) have exhibited tremendous growth, occupational pension plans generally, and defined-benefit (DB) plans in particular, have been in decline.