Simply put, typical defined benefit pension plans' solvency liabilities, which are a proxy for the cost of settling the plan's obligations, have increased by 30% as long-term Canada bond yields have fallen over the last decade from approximately 5.5% to 3.5%. For a large, mature, defined benefit plan, a 0.25% reduction in long-term interest rates can cause an increase in pension liabilities in excess of $250 million.

Finally, however, the rapporteur takes the view that a uniform pan-European system of rules governing the applicable law in the event of divorce and legal separation ought not to be the last word, but that in a second stage rules ought also to be adopted to cover the consequences of divorce (property rights, maintenance, apportionment of pension rights).

36. Notes the current trend away from defined benefit pension systems to defined contribution pension systems and is concerned about the decline in employer contributions that evidently accompanies this trend; emphasises the need for strengthened participation and contribution levels of employees in existing pension schemes in order to ensure adequate retirement income for individuals and emphasises the need for continued adequate contributions from employers, particularly in defined contribution pension schemes; is concerned that the envisaged revision of International Accounting Standard (IAS) 19 regarding employee benefits, as for e ...[+++]xample in the case of the possible abolition of the so-called 'corridor-approach', could entail significant changes to pension systems that need to be carefully assessed, especially as regards possible adverse effects on the attractiveness of defined benefit schemes;

36. Notes the current trend away from defined benefit pension systems to defined contribution pension systems and is concerned about the decline in employer contributions that evidently accompanies this trend; emphasises the need for strengthened participation and contribution levels of employees in existing pension schemes in order to ensure adequate retirement income for individuals and emphasises the need for continued adequate contributions from employers, particularly in defined contribution pension schemes; is concerned that the envisaged revision of International Accounting Standard (IAS) 19 regarding employee benefits, as for e ...[+++]xample in the case of the possible abolition of the so-called "corridor-approach", could entail significant changes to pension systems that need to be carefully assessed, especially regarding possible adverse effects on the attractiveness of defined benefit schemes;

7. Notes the current trend towards moving from defined benefit pension systems to defined contribution pension systems and is concerned about the observed decline in employer contributions that accompanies this trend; emphasises the need for strengthened participation and contribution levels of employees in existing pension schemes in order to ensure adequate retirement income for individuals and emphasises the need for continued adequate contributions by employers, particularly in defined contribution pension schemes; is concerned that the envisaged revision of IAS 19, as for example in the case of the possible abolition of the so-cal ...[+++]led "corridor-approach" could entail significant changes to pension systems that need to be carefully assessed, especially regarding possible adverse effects on the attractiveness of defined benefit schemes;

In some pension schemes invalidity risks, survivor benefits and other elements are covered on a collective basis; it is fair to take that proportionally off of the calculation of the contributions paid by the outgoing scheme participant.