Defined Contribution vs Defined Benefit Pension plans

In a very interesting development and one that I hope is not a harbinger of things to come, all Dutch pension funds will have to make the switch to a new defined contribution (DC) contract which includes a lifecycle system and personal pension pots, following a new pensions agreement between the Dutch cabinet and social partners earlier this month.

The change is “in principle” mandatory for both existing defined benefit (DB) pensions and new accruals, with some exceptions allowed.

A defined contribution plan means that the amount of pension received by the worker is not guaranteed.  Up until the mid-'90s, those employees who had pension plans at work usually had a defined benefit plan. A defined benefit plan means that a worker pays a certain amount into the plan and when they retire they know how much pension they will receive. Beginning in the 90's employers started to move toward with defined contribution plans, these plans are similar to defined benefit plans in that a worker pays a certain amount (the defined contribution) into the plan. However, when the employee retires, the amount of pension they get is determined by the market, and how well the plan is doing. So, the amount of pension is not guaranteed. This plan is better for employers but not good for employees. 

Earlier this month, in Holland,  Social affairs minister Wouter Koolmees had already confirmed pensions would no longer be guaranteed under the new contract, but they would rise and fall in line with markets, shifting risk to participants.

The switch to DC includes the introduction of personal pension pots for all participants to facilitate a projection of members’ “expected pension”, the document said. However, all investments will continue to be managed collectively.

In principle, all 200+ pension funds are required to have moved both existing DB pensions and new pension contributions to the new DC structure by 2026. All pension funds will need to finalize their transition plans by 1 January 2024.

As it becomes harder for governments around the world to deal with the rising number of people living longer and retiring they need to figure out a way to reduce pension liability of the government and the pension plans. The Dutch government move is one that I suspect many other nations will be watching. If it goes ahead without a lot of pushback then I foresee other nations moving, very quickly, in the same direction. 

The Dutch have taken steps to protect older workers with the inclusion of their lifecycle system and the concept of personal pension pots, but others may not see a need to put in the same protections. Something to be aware of as you plan for your own retirement.

Alternative Cancer Treatment

My Niece who was just in her 50’s died of cancer after a prolonged battle with the disease, shared a birthday with my daughter which is today, so it is a bittersweet day. We celebrate my daughter's birthday and mourn for our Niece.
Before my Niece died, she tried some alternative cancer treatments with the hope that she would be cured. None of the Alternatives worked and she slowly succumbed to the disease. Some may have improved her comfort and quality of life for her for a brief time.

What she may not have realized is that some complementary therapies can interfere with chemotherapy or radiation and make them less effective, or worse yet they can have other negative effects. For example, there are some who believe that amygdalin, which is derived from apricot kernel extract and other fruits and nuts, can kill cancer cells. But what they don’t know is that it can also cause cyanide poisoning, Another example: Some patients receive bee venom in hopes of killing cancer but, if there is an undetected allergy, they run the risk of anaphylaxis, a severe allergic reaction that can be life-threatening.

Extreme dieting is another approach that is also dangerous because many people incorrectly believe that cancer feeds on sugar, some people restrict calories. This can disrupt the body’s metabolism, cause weight loss and even malnutrition, leading to interruptions in conventional cancer treatment.

There is research that shows most people are not looking for alternative cancer therapies but are seeking ways to change the experience of their disease and their quality of life. People may also be looking for ways to increase their chances of survival while on their conventional medications or to relieve some of the side effects.

Complementary medicine can be quite useful when used in addition to all physician-prescribed cancer therapies. However, what is harmful is when patients believe that they can use it to replace surgery, radiation therapy, chemotherapy, hormonal therapy, or immunotherapy.

The realities of cancer and cancer treatments can be daunting and confusing. It’s understandable that patients are searching for alternatives. We need to keep providing real hope for our patients using proven treatments and strive for truly better ways to cure through scientific research.

Cancer patients need hope so they look to alternative answers, trying Chinese herbs, vitamins, minerals, meditation, tai chi, yoga, bee venom, and extreme dieting, instead of conventional, doctor-recommended cancer treatments (chemotherapy, surgery, radiation therapy, immunotherapy, and hormonal therapy. 

According to one study, an estimated 48 to 88 percent of people with cancer report using complementary treatments to be cured. However, Yale's research shows the opposite is true. The reality is that doctors and nurses who have been treating cancer for years know a whole lot more than most patients do and they know about what works and what doesn't and that if there were a miracle cure, we would all know about it.

Because of the Pandemic, we were not able to celebrate her life and to properly say goodbye. Many of us are losing loved ones and cannot be with them as they face the end by themselves, This is sad and it takes a toll on us as the mourners and takes a greater toll on those who must face death alone. When faced with a terminal diagnosis of Cancer or any other disease, a person is faced with confronting death Neurosurgeon Paul Kalanithi, in the last entry of the journal he wrote which was published after his 2016 death as When Breath Becomes Air said:

” Everyone succumbs to finitude,” he wrote. “I suspect I am not the only one who reaches this pluperfect state. Most ambitions are either achieved or abandoned; either way, they belong to the past.

“The future, instead of the ladder toward goals in life, flattens out into a perpetual present. Money, status, all the vanities the preacher of Ecclesiastes described hold so little interest: a chasing after wind, indeed.”

The message is that all is meaningless you can experience everything and may have done everything, but nothing is ultimately reliable. Death levels all

Happy Birthday to my daughter

Today is the 20th of August in Australia but it is the 19th of August here. So my daughter who lives Downunder can actually celebrate two birthdays. One with her Australian family and one with her Canadian Family.

Happy Birthday 

to a wonderful person, enjoy the two-day celebration and we wish we could be there with you. Love you and have fun!

The new reality?

In BC we have moved to stage 3 in our recovery model. This means that although travel, hotel stays and expanded social circles are encouraged they are not encouraged too much. We are between 60 and 65% for social interactions of what used to be the old normal. This does not mean the virus is gone, it just means that we can protect ourselves and our healthcare system as new cases are found. 

The move to a new reality is interesting to watch. In BC we, as a society have trusted our Chief Medical Doctor and for the most part, follow her directions. Our politicians have stepped out of the way of science and have allowed medical advice to guide their decisions.

In other parts of the world, this does not appear to be the case and the mounting death toll and number of cases show that science does work, if the people trust the science, as we do in BC. However, it is still isolating and frustrating for those with underlying medical conditions and those who are over 65. 

My wife has underlying conditions and she does venture out, but she keeps her trips out low and her social circle small. My brother-in-law also has underlying conditions and he does not venture out of his comfort zone. I also have other friends who are in the same situation, but they all are in good spirits and I hope that they continue to stay in good spirits. 

If you can, get out, walk, garden, sit on your patio or front steps and enjoy the sun or the light rain,( more likely in BC) and trust the science to help us get to where in a new reality we can move closer to 100% of social interactions.