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B.C. and Alberta governments prefer Ottawa take the lead in pension reform but are prepared to go their own way should the federal effort fall short.
Vancouver (4 December 2009) –, B.C. Finance Minister Colin Hansen has officially welcomed all Canadians to participate in the proposed Alberta / B.C. (ABC) supplementary pension plan.
Hansen told Canwest News Service that recent talk has given the plan a regional appearance and the impression that it will create a two-tiered pension system with the eastern provinces not being a part of the plan.
While the B.C. government would still prefer to see Ottawa take the lead in pension reform, Hansen and his Albertan counterparts are preparing to go their own way should the federal effort fall short.
They plan to table a new pension option as early as next year that would allow residents without pension coverage to supplement the benefits they can anticipate from the Canada Pension Plan.
The initiative is aimed at those earning between $30,000 and $100,000 a year, and who are not saving enough for a comfortable retirement, Hansen said. The plan would be available to any employer, employee or self-employed person, but would be a simple defined contribution plan, the very type that has proved to be ineffective in an economic downturn. And the plan would be the equivalent of a negative option plan. Everyone without an existing pension plan would be enrolled automatically but employers and employees could opt out if they did not wish to participate.
Saskatchewan and Manitoba have indicated that they would be interested in joining the proposed plan if Ottawa and the provinces cannot agree on a national approach.
In November, Nova Scotia Finance Minister Graham Steele expressed concern about the creation of a two-tiered pension system should Alberta and British Columbia press ahead with a voluntary, supplementary pension plan for their residents. He has said that there needs to be a national consensus on how to ensure that all Canadians have income security in retirement.
The federal government’s plans for pension reform are expected to be heard at the federal/provincial finance ministers meeting Dec. 17–18 in Whitehorse.
NUPGE
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE
More information:
NSGEU endorses call for national pension reform
Saskatchewan joins B.C. and Alberta on plan to establish regional pension plan
Union leaders urge western premiers to reject Alberta / B.C. pension proposal
B.C.-Alberta pension report mixed with good and bad advice