The Canadian Life and Health Insurance Association (CLHIA) welcomes a Senate committee recommendation that multi-employer pension plans (MEPPs) should be encouraged.

This recommendation, contained in a report released Tuesday by the Standing Senate Committee on Banking, Trade and Commerce, reflects positions advocated by the industry since the government launched its consultations around saving for retirement, CLHIA says.

“There seems to be a Canadian consensus building around the opportunities that MEPPs provide for Canadians to save more effectively in the workplace,” notes Frank Swedlove, CLHIA president.

Federal and provincial finance ministers agreed to explore the Defined Contribution MEPP concept following their June meeting in Prince Edward Island and the recent announcement by Ontario Finance Minister Duncan points to continued support.

CLHIA also welcomes a number of other proposals in the report including amendments to the Income Tax Act to permit contributions to RRSPs until age 75 and to allow for a $100,000 lifetime contribution to a Tax-Free Savings Account.

CLHIA suggests that the latter proposal could be usefully applied to RRSPs as well.

The proposal that governments work with stakeholder groups to develop financial education materials on saving for retirement is also supported by the industry, it adds.

IE