Dec 19, 2012
By Jane Brown
A push for registered pooled pension plans continues by the federal government. Earlier this week, the federal and provincial finance ministers agreed to come together again in six months to possibly move forward on expanding the Canada Pension Plan. But Federal Minister of State for Finance Ted Menzies is now encouraging the provinces to lay the framework for pooled registered pension plans. It’s a voluntary system that allows workers to contribute but doesn’t require employers to chip in. Menzies expects the plans to be available in all the provinces and would prefer they were harmonized. “We have such a mobile workforce in this country. If you move from British Columbia to Prince Edward Island or the other way, this is your pension plan. And you need to be able to take it with you, so we need harmonization.” Menzies says the matter was discussed at the federal-provincial finance ministers meeting this week.
Ontario’s finance minister Dwight Duncan says his preference is to move forward with an expanded Canada Pension Plan. This has been echoed by members of CARP – A New Vision of Aging – who are suggesting an increase in pension payouts through relatively modest premium hikes by employees and employers.