Allowing increased retirement savings pooling and portability can help improve efficiency, as well as pension plan member retention and continuity, according to a policy recommendation letter from the Association of Canadian Pension Management.
In a letter to the federal government, the ACPM suggested a model that enables and supports retirement arrangements organized around industry sectors, professions or affinity associations. “Plans established on this basis can pool participants with more similar characteristics and employment patterns, supporting more efficient risk management, improved governance and stronger member engagement.”
Indeed, these sector- or association-based arrangements could help ease the administrative burden on small- and mid-sized employers, said the letter, which noted the ACPM wants to see easier transfers between registered plans and products since it would encourage the consolidation of assets within fewer, larger arrangements.
The organization also asked policymakers to consider how increasing longevity, more flexible retirement transitions and diverse employment arrangements have impacted the assumptions of the current tax and regulatory framework governing retirement savings and decumulation.
The letter also suggested the government consider age threshold alignment across registered savings vehicles and public pension programs since the current maximum ages for pension commencement and mandatory withdrawals don’t reflect contemporary longevity trends or the growing prevalence of delayed or gradual retirement.
The ACPM also recommended a review of the minimum registered retirement income fund withdrawal rates and increased integration with incentives of the Canada Pension Plan and the Quebec Pension Plan. The proposal could help support informed and coordinated retirement planning, noted the letter.
“Supporting flexible contribution, consolidation and withdrawal approaches across different income sources can improve access and efficiency without altering the fundamental structure of Canada’s retirement income system.”
Read: ACPM sharpening focus on flexible pension plan design in 2026