The Canadian Institute of Actuaries says it supports a proposal to the federal government to host a national summit on retirement income. Such a summit would formally take action to address critical long-term pension and retirement savings issues, the CIA said in a release.

Ontario Premier Dalton McGuinty called for a national summit on pensions yesterday.

Canada’s actuaries have been promoting such a summit for several years, according to the CIA.

“This announcement clearly demonstrates that finance ministers, pension ministers and premiers are in agreement that the challenges that have afflicted the country’s ailing pension system for many years need to be addressed on a national basis, and not in a jurisdiction-by-jurisdiction, piecemeal way,” CIA president Robert Howard said in the release.

“Many provinces and the federal government have conducted reviews of pension regulation and legislation,” Howard added. “Rather than continue the process where each jurisdiction implements its own changes, a summit can open doors to the development of appropriate national solutions to retirement savings problems.

The CIA says there are many issues to resolve, each of which has a negative impact on the retirement saving system. For example:

1. Canadians are not saving enough for their independent retirement. According to a study conducted by the University of Waterloo in 2007, of those Canadians who plan to retire in 2030, two-thirds are not saving at levels required to meet necessary living expenses, and half of this group have no retirement savings at all.

2. The present global economic crisis will have a serious and deep effect on the pension system.

3. The coverage of the private sector defined benefit pension plan is eroding.

4. The current retirement system contains disincentives for pension plan sponsors to adopt stronger funding beyond the minimum statutory requirements.

5. Plan members and retirees want assurances that their benefits are secure.

6. Pension legislation and regulation is not harmonized from province to province.

The CIA says the outcomes of the summit should include an agreement on a timetable and roadmap to extend defined benefit pension plan coverage in the private sector, as well as a timeframe for harmonizing pension laws and regulations across the country.

The Canadian Institute of Actuaries is the national organization of the actuarial profession.