Jim Flaherty killed income trusts at the behest of the insurance industry, now he's directing Canadian's retirement savings into the laps of the insurance industry....just wait and see who is the greatest beneficiary of this concept of a pooled retirement savings plan. If not the Manulifes and Power Financials of this world, them who?
Flaherty pitches private-sector retirement plan
Globe and Mail
Thursday, Dec. 16, 2010 10:24AM EST
Finance Minister Jim Flaherty wants to encourage Canadians to save more for retirement – particularly self-employed workers and those who do not currently have a company pension plan.
Billed as Pooled Registered Pension Plans, the scheme is described in a nine page draft report prepared by the federal Finance Department and released Thursday morning. It comes just ahead of a Sunday and Monday gathering of federal, provincial and territorial finance ministers in Kananaskis, Alta.
“With respect to retirement income, I hope we will be able to agree on a framework for Pooled Registered Pension Plans,” Mr. Flaherty writs in a Dec. 15 letter to his counterparts. “This would improve the range of retirement savings options available to Canadians as well as provide low-cost retirement options allowing participation by employees – with or without a participating employer – and the self-employed.”
The plan would be administered by regulated private-sector institutions, according to the policy draft.
The focus on a new private-sector fund is only one of two options that a majority of the finance ministers agreed to when they last met in June in Prince Edward Island. The second option was to bring in “modest” enhancements to contributions and benefits under the existing, mandatory Canada Pension Plan.
Mr. Flaherty’s embrace of that option came as somewhat of a surprise and was embraced by labour unions, including the Canadian Labour Congress, who argue further voluntary options will not address the fact that some Canadians aren’t saving enough for retirement.
Yet Mr. Flaherty’s letter is silent on that option. The minister is scheduled to speak with reporters at 10:55 a.m. Thursday.
Alberta Finance Minister Ted Morton was the most vocal critic of enhancing the CPP. He argued that the private-sector option would better target the problem, which he said is primarily middle-income earners who do not have a workplace pension.
Thursday, December 16, 2010
Posted by Brent Fullard at 11:27 AM