Sun Life is continuing its campaign to rally support for the introduction of multi-employer pension plans.

Speaking Thursday to the Economic Club of Canada, Dean Connor, president, Sun Life Financial Canada, urged finance ministers attending a meeting in Whitehorse next week to endorse multi-employer pension plans as a solution for challenges facing Canada’s retirement savings and income system.

Connor said multi-employer plans with automatic enrollment, automatic escalation and an opt-out clause would clearly address public interest issues involved in reform of Canada’s pension system.

“Getting it right will ensure that future generations of Canadian retirees can spend their golden years in security, comfort and dignity,” Connor said.

“Amending the rules to allow for multi-employer retirement plans and group RRSPs that can include the self-employed will make coverage accessible to millions of Canadian workers,” Connor said. “Auto-enrollment and automatic contribution escalation will ensure more Canadians take advantage of that coverage.”

These proposals are sustainable, cost-efficient and can be implemented on a timely basis to the benefit of all Canadians, Connor argued.

He also raised concerns about increasing the role of government through creation of provincially-run pension plans, or expanding the Canada Pension Plan to add a supplementary pension.

“Our proposal brings no additional risk or responsibility to government,” Connor said. “This spreading of risk is especially important at a time when all governments in Canada are in a long period of deficit financing on top of escalating health care costs.”

In addition, Connor warned against the introduction of a system of mandatory worker contributions.

“Reducing people’s choices is the wrong approach in today’s world. Auto-enrollment with an opt-out provision is the right approach,” he concluded. “It is the difference between a ‘nudge’ and a ‘shove’.”

IE