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The pitfall target benefit plans need to avoid

Target benefit plans (TBPs) have been making significant inroads in the public sector of late, more so than most of us realize. Not only are they found in New Brunswick and Prince Edward Island, where governments have adopted a variation of TBPs for their own public sector employees, they’re also making an appearance in Quebec where the government capped the amount it’s willing to contribute to pension plans in the municipal sector, effectively turning these DB plans into TBPs.

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