Canadian life industry hails reform proposals

Recommendations to improve
Canada’s retirement savings landscape, published in a report by the
Standing Senate Committee on Banking, has been welcomed by the
Canadian Life and Health Insurance Association (CLHIA).

A key recommendation made by
the committee is that multi-employer pension plans (MEPPs) should
be encouraged.

“There seems to be a Canadian
consensus building around the opportunities that MEPPs provide for
Canadians to save more effectively in the workplace,” commented
CLHIA president Frank Swedlove.

CLHIA praised a number of
other proposals by the committee, including amendments to the
Income Tax Act to permit contributions to registered retirement
savings plans (RRSPs) until age 75, and to allow for a C$100,000
($98,000) lifetime contribution to tax-free savings
accounts.

According to CLHIA, Canadian
life insurers administer more than 70% of pension plans in Canada
and manage more than 45,000 employer pensions, group RRSPs and
other savings programmes, with combined assets of C$105bn for some
4.9m Canadians.

Sign up for our daily news round-up!

Give your business an edge with our leading industry insights.

Sign up