Archived - Harper Government Begins Consultations on a Potential Target Benefit Pension Plan Framework

April 24, 2014 – Ottawa, Ontario – Department of Finance

Minister of State (Finance) Kevin Sorenson today announced the launch of extensive consultations on a potential federal framework for Target Benefit Plans, or TBPs. TBPs would be a new, voluntary, sustainable and flexible pension option available to federally regulated private sector and Crown corporation plan sponsors, employees and retirees under the Pension Benefits Standards Act, 1985. This would not impact the core public sector pension plans which are governed by statutes such as the Public Service Superannuation Act, the Canadian Forces Superannuation Act and the Royal Canadian Mounted Police Superannuation Act.

The proposed TBP framework is designed to help ensure that effective, sustainable pension options are available to Canadians who work in the federally regulated private sector or Crown corporations. This innovative approach is intended to preserve and increase the number of employers that can offer employees an affordable workplace pension plan that has a predictable pension in retirement. The voluntary nature of the proposed framework means that all parties would be involved in the decision as to whether or not to adopt a TBP, and have a say in the design elements of the plan if they do.

A consultation document providing background information and outlining the parameters of the proposed TBP framework is provided to serve as a focus for the consultations. Individuals interested in participating in the online portion of these consultations over the next 60 days are invited to do so through the link at the bottom of this news release. Given the technical nature of these proposals, the Government will also be engaging industry experts and stakeholders.

Meagan Murdoch
Office of the Minister of State (Finance)

Jack Aubry
Media Relations
Department of Finance

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