Sears Canada to freeze DB plan, launch new DC plan.(Pension Funds)(defined contribution plans)(Brief article)

Pensions & Investments, March, 2007 by Lee, Angela Marion

Byline: Angela Marion Lee TORONTO - Sears Canada Inc. will freeze its defined benefit plan and introduce a defined contribution plan next year. The change, which will take effect July 1, 2008, is expected to save Sears Canada up to C$25 million (US$21.5 million) a year. The defined benefit plan had C$1.35 billion as of Dec.

31, 2004, the latest figure available. It will be the first DC plan for Sears Canada. The company will match 100% up to 4% of the employee contributions, said Vincent C. Power, Sears Canada spokesman in Toronto. "And for 5% or 6% and 7%, Sears will match 50% of those three percentage points.'' The maximum threshold for a company match will be 7%, he said. Mr. Power said the company has started working with a consultant he declined to...

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