The federal government is proposing amendments to pension regulations aimed at increasing flexibility for plan members and improving retirement security.
The proposed changes would allow members of federally regulated defined contribution pension plans who receive variable benefits to unlock up to 50 per cent of their pension funds within the plan. This would align their options with those available to members who transfer their funds to external locked-in retirement vehicles.
The amendments would also establish rules allowing DB plan administrators to transfer pension obligations to life insurance companies through the purchase of life annuities, including setting out the types of annuities that can be used and the information that must be provided to affected members and beneficiaries.
The proposal also includes technical updates to existing regulations to clarify provisions, update references and ensure the appropriate individuals receive required information.
The changes are intended to provide greater flexibility for members managing retirement income, improve benefit security and modernize the regulatory framework, according to a press release.
Comments can be submitted until May 4, 2025.
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