Mark Yamada

Demographics, specifically the unrelenting aging of developed economies, makes DB plans increasingly unstable in the short run and unsustainable long term. Unfortunately in many jurisdictions like North America, these pensions are the last stand for unions. This is not a wise position for employee or the employer because it delays until a crisis the moment of change. DB plans will become target benefit plans out of need rather than by design but the bargaining power of unions will be diminished if they wait.