The federal government has been staking out some public policy ground this week. Finance Minister, Jim Flaherty, told Canadians that expansion of the Canada Pension Plan is not the way to ensure their retirement good fortune. Rather, Mr. Flaherty has indicated that engaging the private sector is the best way for us to provide for our retirement income needs. He has laid out a plan that would see governments and Canadians build upon the excellent private sector pension apparatus that already exists through the creation of a Pooled Registered Pension Plan.
It is never a bad idea to build on strength and this "pooling" concept does just that. It is also a concept that was laid out by MLI Managing Director Brian Lee Crowley in April of this year when he spoke at a conference sponsored by the Calgary School of Public Policy on The Future of Canada's Retirement System. A gathering attended by senior public policy and finance officials from the federal and provincial governments.
In looking at just how we might provide peace of mind to Canadians as we overhaul pensions systems, one of Crowley's key recommendations to the assembly is reflected in this week's federal announcement. He said: "The real issue is risk pooling in a way that doesn't undermine personal and corporate and government responsibility and accountability. We should look carefully for ways to remove obstacles to such appropriate risk sharing or pooling."
Posted by GY