The Department of Finance announced on Wednesday that it has concluded its 60-day public consultations on establishing a federal framework for target benefit pension plans.
The framework would allow for the creation of a new, voluntary, sustainable and flexible pension option for federally regulated private sector and Crown corporation plan sponsors, employees and retirees under the Pension Benefits Standards Act, 1985.
The goal is to preserve and increase the number of employers that can offer employees an affordable workplace pension plan that provides a predictable stream of income in retirement.
The federal government first unveiled its proposal for the new pension option in April, as an alternative to expanding the Canada Pension Plan (CPP).
Kevin Sorenson, minister of state for finance, held a roundtable meeting with pension experts and stakeholders to conclude the public consultations on Wednesday.
Over the course of consultations, the government received extensive feedback on the proposed framework. It says it will now use this input to draft a legislative framework.
“I would like to thank the pension experts and stakeholders I met with today, and all Canadians who submitted their views on the proposed framework for target benefit plans. Their input will help ensure an effective final framework that is responsive to the needs of all,” Sorenson said. “I look forward to bringing forward a target benefit plan framework that is a real option for federally regulated private sector and Crown corporations looking to offer their employees a pension they can count on in retirement.”