Canadian pension fund managers are joining in the round of applause for the federal government’s decision to address the business income trust issue by increasing the dividend tax credit, instead of imposing taxes on investments in income trusts or limiting such investments by pension funds.

In 2004 and 2005, the Association of Canadian Pension Management (ACPM) appeared before the Commons Finance Committee opposing any measures that would discriminate against pension fund investments in business income trusts.

“The ACPM is pleased that the Finance Minister has chosen not to tax or otherwise discriminate against Canadian pension fund investments in business income trusts. Tax-deferred saving toward retirement is sacrosanct. Canadians should continue to be encouraged, not penalized, to save for retirement,” said ACPM President, Scott Perkin, in a release.

The ACPM represents private and public pension plan sponsors, administrators and related stakeholders. It currently has 700 members across Canada, representing 400 pension plans covering approximately 3 million plan members.