RECOGNITION OF GOVERNMENT’S EFFORTS TO DATE

CPC Recommendation 1:

That the federal government acknowledge the value of the recent Canada Pension Plan Triennial Review, as both confirmation that Canada’s retirement system remains on sound financial footing, and as a roadmap for future reform.

CPC Recommendation 2:

That the federal government continue to implement the 2009 reform plan to modernize federally regulated private pension plans, including measures to enhance protections for plan members; reduce funding volatility for defined benefit plans; make it easier for participants to negotiate changes with their pension arrangements; improve the framework for defined contribution plans and for negotiated contribution plans, and; modernize the rules for investments made by pension funds.

CPC Recommendation 3:

That the federal government recognize that recent roundtable discussions, online outreach, and town hall meetings on the subject of Canada’s retirement income system conducted by the federal government and numerous provincial governments serve as a practical and effective model for future public consultations with Canadians.

CPC Recommendation 4:

That the federal government continue to work cooperatively with provinces and territories on retirement income and pensions issues, as demonstrated in the 2009 Canada Pension Plan Triennial Review, cross-country consultations and expert roundtables, and joint federal-provincial working group tasked with conducting an in-depth examination of retirement income adequacy.

CPC Recommendation 5:

That the federal government, in the context of fiscal prudence, continue to lower taxes for low- and middle-income seniors, as it has already done through the introduction of pension income splitting, the doubling of the Pension Income Credit, and two $1,000 increases to the Age Credit Amount, which provide substantial tax savings to seniors and pensioners.

CPC Recommendation 6:

That the federal government continue to build on existing strengths moving forward, while recognizing that the Canadian retirement system performs exceedingly well by international standards, with the three pillars enabling Canadians to provide enough retirement income to sustain an adequate standard of living in retirement, and that Canada has one of the lowest seniors’ poverty rates among OECD countries.

PROPOSALS FOR FUTURE REFORM

CPC Recommendation 7:

That the federal government, in the context of fiscal prudence and in partnership with provinces and territories, explore options to expand the Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP).  The Committee recommends that the federal government study a range of options to achieve this outcome, including reviewing yearly maximum pensionable earnings, and CPP and QPP employer and employee contribution rates.

CPC Recommendation 8:

That the federal government examine legislation governing Registered Retirement Income Funds, Registered Retirement Savings Plans, and Tax-Free Savings Accounts, including withdrawal and contribution limits, to ensure that these government-sponsored vehicles provide maximum savings opportunities for Canadians.

CPC Recommendation 9:

That the federal government encourage the private sector to play a strong role in the retirement income planning (such as exploring altering tax laws to encourage the development of multi-employer pension plans, or exploring the feasibility of permitting individuals with existing pensions to join pooled pension funds).

CPC Recommendation 10:

That the federal government review existing legislation to ensure flexible pension arrangements for individuals without pension coverage, and reduce disincentives for employers to establish pension plans for their employees.

CPC Recommendation 11:

That the federal government review Old Age Security and Guaranteed Income Supplement payment rates.

CPC Recommendation 12:

That the federal government adopt global best practices identified by the Task Force on Financial Literacy, while leveraging existing resources to promote financial literacy through government, labour unions, and educational and financial institutions.

CPC Recommendation 13:

That the federal government study measures to improve oversight of financial advisor fees in order to protect Canadians’ retirement savings and promote private investment as a key component of retirement planning.

CPC Recommendation 14:

That the federal government recognize that distressed pension plans present challenges unique to their individual circumstances, and that these challenges are best responded to on a case-by-case basis using the Distressed Pension Workout Scheme proposed in Bill C-9 (2010).

CPC Recommendation 15:

That the federal government recognize the important role of individual responsibility in Canada’s retirement income system.