Implementation of harmonized minimum funding regulations for federally regulated defined benefit pension plans tops the Pension Investment Association of Canada’s list of advocacy priorities in 2025.

Currently, DB plan sponsors are operating amid a patchwork of minimum funding regulations across the country, as most provinces have introduced requirements of their own. “A unified ‘going-concern plus’ regime can balance benefit security with plan sustainability, encouraging sponsors to continue offering secure DB pensions to Canadians,” said Asif Haque, the incoming chair of the PIAC’s board of directors, in an emailed statement to Benefits Canada.

Read: PIAC focusing on pension solvency uniformity, CAPSA risk management guidelines in 2024

The association will also continue working with government and industry stakeholders to get the real return bond program reinstated. In 2022, the federal government made the decision to cease issuing real return bonds, citing lack of investor support. “Pension plans are natural buyers of [real return bonds], using them as a tool to manage inflation risk,” said Haque, noting the abrupt cessation of the program has forced plans to seek costlier, less liquid alternatives for inflation protection, often outside Canada.

As well, the PIAC plans to concentrate efforts towards encouraging the federal government to act swiftly on recommendations put forth by the Sustainable Finance Action Council in its taxonomy roadmap report.

And, in the current geopolitical and macroeconomic climate, Haque noted advocacy with the feds regarding implementation of its super-priority legislation is a vital focus. Amid the four-year transition period, the PIAC will continue assessing plan sponsor and creditor responses to Bill C-228.

Read: PIAC urging feds to open consultation on cessation of real return bonds

On the defined contribution pension plan front, the association will continue its work to encourage the introduction of more decumulation products, including variable life benefit options, an area Haque noted has seen positive traction over the last few years. He added the association would like to see steps taken that would extend VLB access beyond money purchase products to include RRSPs.

“While plans have excelled in helping members save, the next challenge is ensuring that Canadians have a secure retirement income for life. VLBs address the decumulation phase, offering retirees effective income strategies.”

In addition to Haque, the PIAC is welcoming Oussama Chakroun, Melania Paraschiv, Carolyn Tsen
and Angela Winder as new board members. The board’s departing members are Antonietta Cicerone, Roman Kosarenko, Susan Golyak and Graeme Hay.

Read: PIAC calls for going-concern plus regime, VPLAs, PRPP framework in pre-budget submission