The government of British Columbia is seeking public input on ways to strengthen Canada’s pension system and expand pension coverage for the majority of workers currently without employer-sponsored pension plans.

Through an online pension consultation paper, the public is being asked for their views on how to best address anticipated future shortfalls in Canada’s retirement income system. The paper notes that many current retirees receive a significant proportion of their income from workplace pension plans, but workplace pension coverage has been steadily declining.

Additionally, it says that “evidence indicates that the average Canadian is not saving enough through other retirement savings vehicles to fill the gap from declining RPP coverage.”

“RRSPs are tax-effective savings vehicles, but they are not being fully utilized. There is also growing awareness that the capacity of individuals to accumulate personal savings for retirement may be less than expected due to costs associated with retail investment services and the complexities of investing and financial planning,” it adds.

The consultation paper focuses on various options for improving the system, including: expanding the existing, mandatory CPP system; introducing a voluntary supplement to the CPP system that would provide additional, optional, pension coverage utilizing some of the existing infrastructure of the CPP system; changes to pension legislation to provide more flexibility in the way pension plans are designed; tax reform intended to increase pension plan coverage and retirement savings; and, blended pension reform measures.

The deadline for submissions to the consultation is April 1. Results of the consultation will be used to develop recommendations to be presented to Canada’s premiers at the next Council of the Federation meeting in August.

IE