ACPM proposes a framework for evaluating proposals to expand mandatory public pension plans in Canada
TORONTO, June 23, 2014 /CNW/ - Considerable attention has been paid in recent months to the issue of whether Canada's mandatory public pension programs should be expanded. The Association of Canadian Pension Management (ACPM) believes that targeted action is needed to improve pension coverage and retirement income adequacy for all Canadians and that Canadians will be best served by a retirement income system that embraces both the mandatory and voluntary components of our internationally recognized Three Pillar system.
Today's release, "ACPM Principles for Mandatory Public Pension Plans"* sets out the ACPM's views for the minimum principles that should be adhered to in any expansion of the mandatory public plans component of the Canadian retirement income system. These Principles note that lower income Canadians without workplace pensions are already achieving satisfactory retirement income replacement levels, while higher income earners without access to a workplace plan appear to be saving adequately on their own. It is middle income Canadians working in the private sector without access to a workplace plan that appear to need the most help.
ACPM also believes that Third Pillar workplace retirement plan coverage remains a critical component of the system. ACPM's Five Point Plan*, released in 2010, outlines the steps to providing universal access to retirement income coverage in Canada. It is a comprehensive plan which, if its points are implemented concurrently, would ensure Canadians have the saving options that work best for them and their families.
Andrew Harrison, Chair of the ACPM Board of Directors, stated, "ACPM does not believe that changes to Canada's mandatory public plans alone will produce an optimal result for all Canadians. We suggest the modest, targeted actions in our Five Point Plan. If there must be changes to C/QPP, or if another mandatory pension plan such as the Ontario Retirement Pension Plan is introduced, we believe that the "ACPM Principles for Mandatory Public Pension Plans" should be considered and followed when those changes are made."
The Association of Canadian Pension Management (ACPM) is a national, non-profit organization that represents the retirement income industry. In addition to today's release, ACPM also recently released "DB Pension Plan Funding: Sustainability Requires a New Model"* which offers guidance for Defined Benefit plans in the private sector and are planning to release an ACPM Target Benefit Plan paper that will cover issues related to conversion to a target benefit plan scenario.
ACPM membership represents over 400 companies and retirement income plans that cover more than 3 million plan members, with assets under management in excess of $330 billion. All papers (*) can be found at the ACPM website - www.acpm-acarr.com.
(*) Available at the ACPM website - www.acpm-acarr.com
SOURCE: Association of Canadian Pension Management
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