British Columbia Government Seeking Public Input on Pension Options
The provincial government of British Columbia is seeking public input on ways to strengthen the pension system and expand pension coverage for the majority of workers currently without occupational pension plans. Through an online pension consultation paper, British Columbians are being asked for their views on how to best address anticipated future shortfalls in Canada's retirement income system. At present, three in four private-sector workers are not covered by an employer-sponsored pension plan. Research indicates that many private sector workers who do not have access to employer-sponsored pension plans, or who do not have sufficient personal savings will not have adequate retirement income in the future.
The consultation paper focuses on various options and includes:
- Expansion of the existing, mandatory Canada Pension Plan (CPP) system.This would provide increased, universal CPP pension benefits.
- A voluntary supplement added to the CPP system.This would provide additional, but optional, pension coverage utilizing some of the existing infrastructure of the CPP system.
- Changes to pension standards legislation to provide more flexibility in the way pension plans are designed. This would allow for new types of pension plans that would better meet the needs of today's employers and workers.
- Tax reform. This would involve amendments to the federal Income Tax Act intended to increase pension plan coverage and retirement savings.
- Blended pension reform measures. A comprehensive approach,
combining some or all of the above options.
The deadline for public comments and suggestions is April 1, 2010.
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