these activities make financial markets more complete and, so, enhance their efficiency. the size and sophistication of pension plans also lead them to be actively interested in good corporate governance, thus contributing to market discipline, which supports overall market efficiency. the decline in defined - benefit pensions in recent years, defined - benefit pension plans have been in decline. the number of canadians covered by defined - benefit plans has fallen by roughly 5 per cent since 1992. while the large majority of employer - sponsored plans are still of the defined - benefit variety, defined - contribution plans have grown significantly. we have seen many employers either collapse their defined - benefit plans or restrict new entrants into the plans. we have also seen increasing deficits in many defined - benefit pension plans. the ability of individuals with rrsps to use a registered retirement income fund rather than a life annuity does allow more sophisticated retirees to mitigate this risk somewhat. i am not aware of any canadian research on this topic. but it is a reasonable assumption that these results would apply to canada. but many defined - benefit plans lack portability, which lessens their attractiveness. arbitrage refers to a trading strategy that tries to take advantage of differences in prices for the same asset trading on different exchanges. 3 / 5 while part of the decline in defined - benefit plans comes from developments in the economy and the labour force, part is also due to the incentives under which these plans operate. let me elaborate. defined - benefit plans should operate so that the expected value of all benefits to be paid out equals the expected value of all contributions plus the expected returns on investments. but when the actual value of one of these variables differs from the expected value, the sponsor of the plan takes on responsibility for making up any difference. what would make a sponsor accept this responsibility? one reason would be if sponsors could mitigate the risk of worse - than - expected outcomes by being allowed to benefit from better - thanexpected outcomes. but while there is no question that the sponsor is responsible for any deficit in the plan, it is not at all clear that the sponsor benefits from any surplus that may be generated. the question of who " owns " a surplus in a defined - benefit plan has been before many different courts at different levels and in different jurisdictions in recent years. while the precise answer depends on the specific wording of the rules of any given pension plan, in general, provincial and federal pension law has evolved so that employees

jerome h powell : fed listens – perspectives on the pandemic recovery introductory remarks by mr jerome h powell, chair of the board of governors of the federal reserve system, at " fed listens : perspectives on the pandemic recovery, " sponsored by the board of governors of the federal reserve system, washington, d. c. ( via webcast ), 24 september 2021. * * * nearly three years after we started holding fed listens events around the country, the program has proved to be even more valuable than we could have imagined. its original purpose was to elicit broad feedback as part of our monetary policy framework review. however, the fed has long viewed community outreach as a vital part of our economic understanding, and these discussions have delivered such value that fed listens has evolved to join the other regular staples of our outreach work. these events enable us to hear directly from people on the ground, at the heart of the sectors and industries you represent, from communities across the country, to add tone, contour and greater depth to the nation ’ s economic portrait. these insights are particularly valuable as we move through this challenging and precedent shattering period. the speed and intensity of this downturn – and the rapidity of the recovery in many areas – are without modern precedent. i am very glad you could all join us today to offer your thoughts, and i want to thank you on behalf of the entire federal reserve system for both your presence today and for your continued feedback and participation. some of the issues you are confronting are shared across sectors, while others are unique to your fields. most of you are contending with changed workplaces, from safety protocols whose half - lives are unclear to fundamental shifts in how your industries operate, in everything from feeding people to how movies are released. business plans have been reworked, outlooks have been revised, and the future continues to be tinged with uncertainty. while uncertainty often results in immobility for businesses, it can also spell opportunity, and the creativity and adaptability on display over the past 18 months have been among the few bright spots. i have been amazed and inspired by the flexibility and ingenuity, particularly that of small businesses, in shifting to meet the demands of a new reality. all of us are very much looking forward to the discussion today. you provide a wealth of information by sharing your experiences and those of your colleagues, customers, and communities. that has always been crucial in how we conduct monetary policy but means even