In my last post, I briefly canvassed the differences between defined benefit (DB) and defined contribution (DC) pension plans. I cautioned that, due to their perceived financial predictability and apparent straightforward nature, DC plans don’t always get the attention that they deserve from buyers undergoing the due diligence review of a target. While DB plans… → Read More
Defined Contribution Pension Plans: Uncovering the Wolf in Sheep’s Clothing?
Posted in Contractual Matters, Private Equity, Private Transactions, Public M&A, StrategyDefined Benefit Versus Defined Contribution Pension Plans: The Basics
Posted in Contractual Matters, Private Equity, Private Transactions, Public M&A, StrategyWhen purchasing an existing business, many buyers are understandably reluctant to assume obligations under a target’s defined benefit (DB) pension plan. Under a traditional DB plan, members (i.e. plan participants) are entitled to a guaranteed pension amount calculated by a formula. While active employees may contribute to such plans, each Canadian jurisdiction’s laws place the… → Read More
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