DB Makes Comeback In PPPs


    There is one segment of the economy where defined benefit pension are making a comeback, says John Sanchez, an investment advisor with the Horwood Team at Richardson GMP Ltd. In the article ‘Pensions: Defined Benefit Plans: Death Or Rebirth?’ at the Private Wealth Canada website, he says the Personal Pension Plan (PPP) has many similarities to an existing structure, the Individual Pension Plan (IPP). It is set up for a single individual, the owner of the company and it combines a DB component (incorporating all of the benefits of an IPP) with a money purchase or defined contribution component and an additional voluntary contribution (AVC) sub-account.