National pension reform preferred: minister

The letter—signed by the leaders of nine of the largest pension plans in the country—calls for federal and provincial governments to acknowledge the existence of problems in Canada’s retirement system and to create a task force with a mandate to identify the best possible solution.

While ministers have yet to respond to the letter, coalition spokesman and Ontario Teachers’ Pension Plan CEO Jim Leech says there is widespread support from non-signatory pension plans and financial industry leaders who agree that “it is now time for action.”

Saskatchewan Finance Minister Rod Gantefoer has not made a decision on pension reform and is going into the ministers’ meeting with an open mind, says a spokesperson. However, Saskatchewan has the luxury of an existing supplementary pension plan with 31,000 members and assets of $267.9 million. In order to increase the plan’s coverage, the province is currently seeking an expansion of the annual contribution limit from $600 to $2,500, which has drawn the attention of Manitoba Finance Minister Rosann Wowchuk. She sees the Saskatchewan plan as an option in lieu of a national solution.

“We would like to see these issues addressed on a national basis, but if that doesn’t work, we will definitely look at creating a supplementary plan with other provinces on a regional basis—either Saskatchewan or British Columbia and Alberta,” she says.

Wowchuk supports the idea of a task force but only with a mandate for decisive action, which is exactly what Leech has in mind.

“We don’t need this task force to come up with new ideas,” he says. “The commissions have already done that. What we need the task force to do is agree upon the best ideas already being discussed nationally, commit to a [six-month] timetable and act upon the suggestions that have been put forward by such expert bodies as the Arthurs Commission.”

Wowchuk considers the pension issue a priority heading into the ministers’ meeting and is optimistic that a national deal can be reached, but he indicates that some provinces do not approach the portfolio with the same zeal. “There are some jurisdictions that have put more effort into it, and there are other jurisdictions that have other priorities,” she says. “However, across the country, people are saying we need a national solution on this. We don’t want to see a fragmented system.”

Federal and provincial ministers will be meeting in Charlottetown in June.

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