PBI provides comments on the proposed Voluntary Supplement to the Canada Pension Plan (CPP).

Consultations on a Voluntary Supplement to the Canada Pension Plan

Federal Government of Canada

The federal government has announced that it will be seeking feedback on the voluntary supplement to the Canada Pension Plan (CPP) originally proposed in May.

The consultation document released in July included eight questions about the voluntary supplement:

  1. Do you believe a voluntary supplement to the CPP should be an option for Canadians to save for retirement?  Is this something you would use to increase your retirement savings?
  2. How could a voluntary supplement to the CPP be designed to facilitate participation of individuals who may be at risk of undersaving for their retirement?
  3. How much flexibility should there be for individuals who choose to participate?  For example, what are your views on locking-in funds for retirement and providing variability in the contribution rates?
  4. How could a voluntary supplement to the CPP be designed to provide a secure stream of retirement income?
  5. What retirement income options should be available upon retirement for savings accrued within a voluntary supplement to the CPP?
  6. Should transfers between a voluntary supplement to the CPP and other retirement savings vehicles be permitted? If yes, should there be any limits?
  7. While employers would not be required to contribute, what would be the appropriate role for employers?
  8. Who should be responsible for investing the contributions made to a voluntary supplement to the CPP?

Submissions were being accepted until September 10, 2015.

In our Submission Letter, we express reservations towards the newly presented voluntary CPP “expansion” and suggest modifications that could be made to the proposed voluntary “expansion” that could make it more efficient.

Please find attached the Submission Letter submitted by PBI Actuarial Consultants Ltd.:

Consultation Submission on a Voluntary Supplement to the Canada Pension Plan

Sign up