Categories: Need to know

Flaherty unveils pooled pension plan

Liberals dismiss proposal as a “baby step”

by macleans.ca on Thursday, December 16, 2010 2:38pm - 7 Comments

Federal Finance Minister Jim Flaherty has pitched a private pension plan that he hopes will encourage more small-business people and self-employed Canadians to save. “This plan would say to an employer, ‘Listen, you can offer this plan but you don’t have to contribute to it.’ Employees would contribute to it, or can opt out,” explained Flaherty. “It would make a nice, easy and relatively painless way for people to contribute to their retirement.” The plan would be built on defined contributions and would be run by private financial institutions. The idea is to keep costs down by pooling money from the large number of small business people and self-employed workers who currently aren’t saving or are using smaller plans. Liberal critic Judy Sgro called the plan “a baby step,” adding “it’s not going to do much for [many] self-employed, for women that are in and out of the work force, for those in rural Canada.”

CBC News

Tags: retirement

http://viableopposition.blogspot.com/ Open_Democracy

Mr. Flaherty is also recommending that all provinces balance their budgets by the year 2015.

Here's a look at all of the provincial deficits for the current fiscal year and when they propose to reach balance:

http://viableopposition.blogspot.com/2010/04/2014…

What is fascinating about the exercise is watching provincial treasurers move the date of their projected balance forward every year like the proverbial carrot in front of the horse. God/Allah/Buddah/Krishna help us all.
Steve M

In this Parliament, the Opposition calling something the Gov't proposes a "baby step" is practically a wholehearted endorsement.
BGLong

Ah yes …. the Investment Managers/Bankers Full Employment Act … gotta be good.
Canuckguy

Most of the low paid retail workers will opt out so nothing is to be gained. They will be crying the blues later in life when they have no personal RSP to supplement the CPP and the OAS. When you are just making min wage or just a few dollars better, trying to come up with, say 5% of your paycheck for the RSP is difficult.
Philanthropist

It's a good idea, despite the weak protestations by whining liberals.

fuddle duddle

i don't really see the point of this plan.. we are better off having money in private rrsps, in my opinion it would have been better if he raised the rrsp limit esp for low and mid income people