Tag Archives: Pension Reform

IIAC Responds to Finance Ministers’ Announcement on CPP Reform (IIAC Blog)

IIAC Responds to Finance Ministers’ Announcement on CPP Reform (IIAC Blog)

The Investment Industry Association of Canada is pleased Canada’s finance ministers reached an agreement on amending the Canada Pension Plan (CPP) to address the national retirement savings shortfall at their meeting in Vancouver on June 20, 2016. Assets held in Share Price are typically owned by larger institutional firms with a considerable number of investments such as banks, insurance companies, mutual funds, hedge funds and pension funds. This decision will avoid a patchwork of provincial solutions, like the ORPP, that would require significant up-front costs; treat Canadians differently across the regions; limit pension … Continue reading

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Selective Reforms Needed to Help Under-Saving Canadians Meet Their Retirement Savings Objectives (IIAC BLOG)

Selective Reforms Needed to Help Under-Saving Canadians Meet Their Retirement Savings Objectives (IIAC BLOG)

Finance ministers are discussing potential CPP enhancement on June 20-21 when they meet in Vancouver, BC. These discussions should be undertaken as part of an integral approach to strengthening Canada’s retirement savings system. Respected research confirms the majority of Canadians are on track to meet their retirement savings goals through their voluntary savings, pension plans and the federal retirement savings system.

The retirement savings shortfall is not widespread in Canada, but limited to Canadians with modest incomes. As a member of a national coalition of 15 industry groups, the IIAC recommends a national and coordinated approach … Continue reading

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Ian Russell on BNN: National approach on pensions trumps provincial patchwork (IIAC Blog)

Ian Russell on BNN: National approach on pensions trumps provincial patchwork (IIAC Blog)

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IIAC 2016 Federal Budget Response (IIAC Blog)

IIAC 2016 Federal Budget Response (IIAC Blog)

The 2016 federal budget comes in the midst of a marked deceleration in economic growth and the prospect of a modest recovery over the next year. Stepped-up program spending over the next two fiscal years, averaging 6 percent annually, provides support for growth and a buffer to cushion the economic downturn through enhanced programs for the elderly and the unemployed, and for families under the new Canada Child Benefit. The federal spending trajectory, however, is mindful of keeping the debt-to-GDP in check.

The budget deficit balloons to just under $30 billion in the coming fiscal year … Continue reading

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The IIAC Presents its Position to Government on a Voluntary Supplement to the CPP (IIAC Blog)

The IIAC Presents its Position to Government on a Voluntary Supplement to the CPP (IIAC Blog)

On July 13, the federal government opened a public consultation on options for a voluntary supplement to the CPP. While a number of recent studies have concluded that most working-age Canadians are on track to maintain their standard of living in retirement, the government said it is committed to exploring ways to give Canadians more choice in how they save.

Given the number of savings options already available in Canada, it is not clear that a voluntary CPP supplement is needed.

It may not even make sense. Voluntary supplemental pension plans generally involve contributions to individual accounts, … Continue reading

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Federal Government Consulting on a Voluntary Supplement to the CPP (IIAC Blog)

Federal Government Consulting on a Voluntary Supplement to the CPP (IIAC Blog)

Finance Minister Joe Oliver announced that the Government of Canada will consult with individuals, the financial sector, retirement income experts and other stakeholders on options for a voluntary supplement to the Canada Pension Plan (CPP). Discussion points for consultation include:

Whether a voluntary supplement to the CPP should be an option for Canadians to save for retirement.  Possible design features that could facilitate voluntary participation. The level of flexibility that should be permitted for participants. Key issues related to flexibility are the locking-in of contributions and establishing appropriate limits on contributions. The level of portability. The role, if any, employers might … Continue reading

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