Safe Harbor Law Would Help Employees Save More, Study Says

Protections for Canadian Employers: Employers in Canada would benefit from safe harbor provisions similar to those afforded companies in the U.S. that help steer workers into making wise retirement investment decisions, a Canadian research firm reported. As in the U.S., Canada is experience a large shift to defined-contribution plans from defined-benefit pension plans. Researchers at the C.D. Howe Institute, a Toronto-based policy group, say safe harbor policies, which afford legal protection to companies that make good-faith efforts to foster smart retirement investment choices, would allow companies to offer automatic enrollment into pension plans and set default contribution rates, steer employees into lifecycle funds and offer advisory services.