After decades of dealing with underfunding, Canadian defined benefit (DB) pension plans are now navigating unfamiliar territory—a funding surplus. While this is a positive shift, it comes with new challenges: managing risk, aligning surplus use with plan objectives, and supporting long-term sustainability.
This white paper from TD Asset Management Inc. outlines a modern, flexible approach to surplus management. It shows how sponsors can provide benefit security, reduce costs, and even enhance benefits—by aligning their investment strategy with the new funding reality.
Key Takeaways:
Why “not all surpluses are equal” — and how to evaluate yours in the proper actuarial and regulatory context
How to shift from traditional de-risking to a smarter “right-risking” approach
Ways to build a robust liability-hedging foundation to protect accrued benefits
Strategic options for using surplus: from cost savings and de-risking to benefit enhancements
How to design an investment strategy that aligns with your surplus objectives
Real-world examples of efficient surplus management delivering long-term value
Download the white paper now to explore how you can turn surplus into long-term strength for your plan
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