Based on presentations to Canadian Pension and Benefits Institute (CPBI) public forums in Winnipeg, Regina, Vancouver, and private conversations with officials in five provinces (ON, MB, SK, AB, BC) on pension reform,
Keith Ambachtsheer shares some observations and reflections in a recent newsletter.
- There is still considerable appetite for a package of sensible pension reform measures in all five provinces,with both the ‘CPP enhancement’ and ‘private pension innovation’ paths open. There is also a broad understanding this is about making our retirement income system more effective in a multi‐decade time‐frame, and not about some quick fix for tomorrow.
- Despite ongoing discussions, it will take concerted efforts by the working groups of officials to make significant design progress along each of these two paths prior to the next Ministers’ Meeting (likely in mid‐December).
- The weight of opinion appears to be that if anything significant is to happen on the ‘CPP enhancement’ path, it should be to raise the YMPE, thus making the current CPP benefit apply to some amount of income above $47K. However, there are still those who argue for raising the CPP benefit (i.e., income replacement) level as well………….
- The ‘private pension innovation’ path is being actively brainstormed. There is broad understanding
that whatever is done, it must materially raise pension coverage for middle‐income private sector workers at a reasonable cost. There is also broad understanding that ‘auto‐enrolment’ into one of a few large‐scaled, well‐managed plans is critical to success. The toughest nut to crack in bringing this about is ‘sponsorship…READ MORE