The Association of Canadian Pension Management (ACPM) today released a report that points to concern in the retirement sector that the typical retirement savings plans offered to Canadians will not contribute meaningfully to an adequate retirement income.

The report, “Delivering the Potential of DC Retirement Savings Plans”, reveals the need for a comprehensive and balanced analysis of retirement saving plans in Canada.

“It’s important to note that the ACPM does not advocate for Defined Benefit (DB), Defined Contribution (DC) or any other specific pension model”, says Becky West, the Chair of the ACPM DC issues sub-committee that prepared the report. “Rather, we are advocating for a level playing field for employers and employees to choose the pension model that suits them best and the ability of any model chosen to make a significant contribution to employees’ retirement income.”

West goes on to point out that, the ACPM’s objective goes beyond the creation of a discussion paper. “The mission of the ACPM is to advocate for a healthy and sustainable Canadian retirement income system. It is hoped; therefore, that this document will become the starting point for such a discussion among retirement system stakeholders that will end with fair and practical recommendations for improvements to retirement savings plans in Canada.”

The report identifies issues relating to retirement savings plans that need fixing or further dialogue and makes a number of recommendations. The ACPM believes that if these recommendations are followed, that the end result will be stronger and more effective retirement savings plans and an environment in which plan sponsors will be encouraged to maintain existing plans and establish new ones.

“Many of the recommendations in this report can be implemented under the current legislative regime”, says Scott Perkin, President of ACPM. “However, other recommendations will require changes to the regulatory scheme. We are therefore urging governments to consider the recommendations in this report and to make the appropriate changes.”