Morneau Shepell’s 60 Second Survey suggests that if the provinces adopted a new pension plan to supplement the Canada Pension Plan (CPP), employers would prefer that participation be mandatory.
Employers favoured the idea of their province introducing a new DC plan to supplement the CPP (a plan that required employee and employer contributions) by a margin of nearly two to one over auto-enrollment with the ability to opt out.
The preferred mandatory DC plan would require employees to contribute only on earnings more than $25,000 rather than on the first dollar of earnings.
“For the last seven years, employers and the public at large have been bombarded with white papers and public consultations on pension reform. Now they just want their governments to get on with it,” says Fred Vettese, chief actuary of Morneau Shepell. “There is a greater appetite among employers than we thought for a mandatory new plan that requires both employer and employee contributions.”
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