The insurance industry is calling on government policymakers to make changes to pension rules that it says could facilitate retirement savings.

The Canadian Life and Health Insurance Association says that it sent letters to federal Finance Minister Jim Flaherty, along with all of his provincial counterparts calling for legislative changes.

“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,” stated 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.”

The industry’s proposed changes include:

• allowing 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 automatically enroll their employees; and

• allowing variable contributions by employees as their age and salary levels change.

CLHIA says that these proposals, and similar changes for group RRSPs, would create more and better retirement savings options for small and medium-sized businesses and the self employed.

IE