To simplify pension rules, multi-employer contribution pension plans
The life and health insurance industry have urged for changes in legislation that will increase the opportunities for Canadians to save for retirement. The letters that were sent to federal and provincial and territorial finance ministers on behalf of the industry.
The Canadian Life and Health Insurance Association (CLHIA) has laid out proposals that promotes greater use of employer-based retirement savings.
According to the industry, the proposed changes include permitting multi-employer defined contribution pension plans so that individual employers do not have to take on the costs and administrative burden of being a plan sponsor; allowing employers to auto enroll their employees and allowing variable contributions by employees as their age and salary levels change.
The proposals would create better options than exist today for small and medium-sized businesses and the 3.5 million self employed.
Our proposals can make an enormous difference in encouraging Canadians to save for retirement, without the need for government intervention and the risks that it could bring, noted Frank Swedlove, CLHIA President. Legislative changes would be minor and could be done quickly, and the private sector can be ready almost immediately to provide expanded pension opportunities to Canadians.