Establishing large multi-employer pension plans in Canada would be an effective way of addressing Canada’s retirement savings shortfall, Quebec finance minister Raymond Bachand said on Friday.

The provincial finance ministers are slated to meet in Kananaskis, Alberta on Dec. 20, where they intend to continue working to improve securities regulation and the retirement income system.

In a statement released on Friday, the Quebec government said that developing a harmonized regulatory framework among the provinces to foster the establishment of large multi-employer plans in Canada “would be a worthwhile way to increase savings for retirement”, particularly for self-employed workers and workers in small businesses.

“The federal government must undertake to amend its tax legislation and regulations to enable the development of large-scale pension plans that feature low costs for participants,” said Bachand. “That would give a clear signal on the willingness to quickly improve Canada’s retirement income system.”

He also said that more work needs to be done regarding the enhancement of the Canada Pension Plan and the Quebec Pension Plan to assess the option that best addresses the savings shortage, while minimizing the impact of higher contributions on the economy.

“The proposed changes to the retirement income system must take into account the impact they may have on businesses and households, at a time when the global economic recovery remains hesitant. In addition, these changes must not encourage experienced workers to leave the labour market prematurely,” Bachand noted.

The ministers will begin their meeting with a discussion with the governor of the Bank of Canada, Mark Carney, on the Canadian and international economic outlook. They will also continue working on improving the retirement income system.

“Quebec’s primary preoccupation is to secure the long-term financial stability of the Quebec Pension Plan and, by the same token, maintain inter-generational equity,” said Julie Boulet, the province’s employment minister.

Meanwhile, the provincial-territorial council of ministers of securities regulation will meet in Calgary on Sunday, where the ministers will discuss “the importance of continuing the work initiated in the wake of the international reforms affecting the financial sector,” according to Bachand.

“Despite the debate instigated by the federal government, which is seeking to replace the provinces in regard to securities regulation, the provinces intend to fully carry out their responsibilities in this field,” he stressed.

IE