We need to clarify the CPP’s exit rules – Financial Post
Many commentators, including the prime minister and leader of the opposition, have now weighed in on the downsides of Alberta withdrawing from the Canada Pension Plan (CPP) and creating its own Alberta Pension Plan (APP). The Alberta proposal puts at risk a plan that has been providing secure retirement, survivor and disability benefits for nearly 60 years.
Much of the criticism and concern revolves around the $334 billion that a report prepared by the actuarial firm LifeWorks for the government of Alberta says the province should claim in compensation for assuming responsibility for paying the future benefits Albertans earned while their province was part of the CPP. The amount is 53 per cent of CPP’s current…
Alberta’s case for taking half CPP’s assets – Financial Post
Since the release of the Alberta Pension Plan report, I’ve read with interest the steady stream of commentary and opinion and, while there have been some thoughtful pieces, much of it has been ill-informed and misleading.
Doubt has been cast on the credibility of the firm that researched and delivered the report. Questions have been raised about the relevance of the formula used to calculate the transfer amount. And there seems to be general disbelief that a province with only 12 per cent of the nation’s population could have title to 53 per cent of the assets of the Canada Pension Plan (CPP).
Albertans will only be able to properly weigh the risks and opportunities of an Alberta Pension Plan (APP) when these…
William B.P. Robson – Retirement Savers Should Face No Offshore Investment Limits
From: William B.P. Robson To: Retirement Savers and Fund Managers Date: November 13, 2022 Re: Retirement savers should face no offshore investment limits Is the federal government thinking of limiting the foreign assets Canadians can own through their pension plans and RRSPs? Rumours to that effect are spreading among Canada’s pension plans and investors. The rumours are plausible. As […]Don’t limit Canadian investors’ access to foreign assets – Financial Post Op-Ed
Is the federal government thinking of limiting the foreign assets Canadians can own through their pension plans and RRSPs? Rumours to that effect are spreading among Canada’s pension plans and investors.
The rumours are plausible. As a recent C.D. Howe Institute report documents, business investment in this country has been so weak that capital per worker has actually been falling. That deadens productivity growth, which causes living standards to stagnate. A government that puts populist intervention ahead of principled economic policies, as this one often does, might want to force Canadian savers to invest more in Canadian assets.
How might it do so? Pension funds and other institutional investors have a…
Strengthening Retirement Income Security: Fairer Tax Rules and More Options Needed
Simple changes to tax rules can improve retirement security for Canadians, as well as make the retirement system more equitable among different classes of savers, and more efficient at managing longevity risks for capital decumulation. This E-Brief provides a discussion of needed retirement-related tax changes impacting members of capital accumulation plans, such as RRSPs and […] Barry Gros – Target Benefit Pension Plan Sustainability: Determining the Optimal Role and Magnitude of PfADs
To: Ontario’s Pension Policy Branch From: Barry Gros Date: May 19, 2023 Re: Target Benefit Pension Plan Sustainability: Determining the Optimal Role and Magnitude of PfADs The Ontario Ministry of Finance released a consultation document on target benefit pension (TBP) regulation, with a June 30 feedback deadline. I evaluated its proposals in two recent Intelligence […]Jason Vary – Bill C-228: The Four-Year Countdown Starts Now
To: Pension Policy Watchers From: Jason Vary Date: May 17, 2023 Re: Bill C-228: The Four-Year Countdown Starts Now Well, despite all the doomsaying about unintended consequences, Bill C-228 the Pension Protection Act is now law. It received royal assent on April 27 and a four-year transition clock is now ticking. Quick Refresher The new […]Bob Baldwin – The Canada Pension Plan is in Good Shape, But Risks Not Widely Understood
To: Federal and Provincial Governments From: Bob Baldwin Date: May 16, 2023 Re: The Canada Pension Plan is in Good Shape, But Risks Not Widely Understood Last December, the Office of the Chief Actuary (OCA) presented the 31st actuarial review of the Canada Pension Plan to the Minister of Finance. As someone who reviewed the 30th […]Live Long and Prosper? with Bill Robson
You’re at risk of running out of money in retirement. On episode eight of the C.D. Howe Institute Podcast, CEO Bill Robson tells host Michael Hainsworth why we need to change the rules regarding RRIFs today to ensure Canadians live long – and prosper. Barry Gros – Achieving Sustainability in Target Benefit Pension Plans
To: Ontario’s Pension Policy Branch From: Barry Gros Date: April 21, 2023 Re: Achieving Sustainability in Target Benefit Pension Plans The Ontario Ministry of Finance released its Consultation Document on the regulation of target benefit pension plans (TBs) last month with a request for comments by June 30. Yesterday we evaluated it against recommendations previously […]Barry Gros – A Scorecard Grading Ontario’s Proposed Framework for Target Benefits
To: Ontario’s Pension Policy Branch From: Barry Gros Date: April 20, 2023 Re: A Scorecard Grading Ontario’s Proposed Framework for Target Benefits The Ontario Ministry of Finance released a Consultation Document on the regulation of target benefit pension plans last month, with a request for feedback by June 30. The C.D. Howe Institute has published […]Live Long and Prosper? Mandatory RRIF Drawdowns Raise the Risk of Outliving Tax-Deferred Saving
Tax rules requiring RRIF withdrawals need revamping. Longer lives and lower returns increase the likelihood that mandatory minimum withdrawals will leave seniors with negligible income from their tax-deferred saving in their later years. Government impatience for revenue should not force holders of RRIFs and similar tax-deferred vehicles to deplete their nest eggs prematurely. We need […]