The Association of Canadian Pension Management (ACPM) says it applauds the federal government’s proposal to eliminate the current 30% ceiling on foreign investments by Canadian pension funds and to increase the annual contribution limits for RRSPs and registered pension plans.

The federal budget, table yesterday, proposes that the 30% foreign property limit on pension investments be eliminated effective immediately, and that RRSP annual contribution limits be gradually increased to $22,000 with corresponding increases for registered pension plans.

Since last November, the ACPM appeared before the Commons Finance Committee, and met separately with the political parties, to push for elimination of the 30% limit.

ACPM says the limit was costing Canadians an estimated $1.5 to $3.0 billion annually in foregone income and increased administrative fees, and restricted the ability of Canadians to diversify their retirement portfolios to reduce risk and seek better returns.

ACPM also argued for increased the RRSP and pension contribution limits announced in the budget.

It says these budget proposals will promote greater self-reliance in retirement by encouraging savings and by assisting Canadians investing for a secure retirement.

ACPM represents private and public pension plan sponsors, administrators and related stakeholders.