The life and health insurance industry congratulates the committee led by Alban D’Amours on its report, examining the future of Quebec’s retirement system.
Released Wednesday, the D’Amours report is the outcome of an in-depth review by a committee of experts mandated by the Régie de rentes du Québec to examine the future of the retirement system the province and propose solutions to ensure its viability and continued good performance, in light of new economic and demographic realities.
Of the committee’s 21recommendations, 15 are aimed at ensuring the sustainability of defined benefit pension plans.
In particular, the Canadian Life and Health Insurance Association (CLHIA) says it welcomes the committee’s support for voluntary retirement savings plans (VRSPs) and the recommendation for their speedy introduction.
“Adding VRSPs to the catalogue of retirement savings choices for working Quebecers will be a major step forward in improving the retirement savings landscape in this province,” said Yves Millette, senior vice president, Quebec affairs for CLHIA, in a release.
“This is also an opportunity for small and medium-sized businesses to attract the best employees as they will be able to take advantage of low-cost pension plans now currently only feasible for the largest employers.”
CHLIA notes that almost two million workers (47%) in Quebec are not participating in any type of pension plan at the workplace.
CHLIA says it also appreciates the intention expressed by Quebec Premier Pauline Marois to introduce legislation for VRSPs before May 15 and looks forward to working with the government in bringing the VRSP legislation to fruition.
The report’s recommendation to delay the requirement to convert RRSPs to RRIFs from age 71 to age 75 is also welcomed by CLHIA.