The Government of Quebec is planning to introduce a bill in the spring of 2020 that would allow employers in the province to implement target-benefit pension plans.

The provincial government has already given a mandate to Retraite Québec to develop a regulatory framework for the plans, said Minister of Finance Éric Girard at an event in Quebec City last week. “This bill is intended to provide Quebecers with an additional savings option and responds to the demands of employers and unions in a context of declining defined benefit pension plans.” 

Read: Federal target-benefit conversions face an uphill battle

In Quebec, only certain companies in the pulp and paper sector are currently permitted to offer target-benefit plans to their employees. In 2016, Ottawa introduced Bill C-27 to allow the plan for employers under federal jurisdiction, but it was suspended. However, in last month’s election campaign, federal Finance Minister Bill Morneau suggested a Liberal government could put target-benefit plans back on track.

During the speech, Girard also said Quebec residents retire too early and that the workforce participation rate of people over 60 in the province is too low. He said he wants to encourage people to work longer to boost the province’s economy and ease labour shortages. Tax measures, such as the tax credit for experienced workers and a reduction in payroll taxes for small- and medium-sized organizations that hire these workers are a step in the right direction, he noted.

“We often talk about the multi-storey house to represent our retirement system, which includes public plans, employer plans and personal savings. I would add another floor: earnings from work during retirement.

This article was originally published on Benefits Canada‘s companion site, Avantages.

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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Joe Nunes:

“We often talk about the multi-storey house to represent our retirement system, which includes public plans, employer plans and personal savings. I would add another floor: earnings from work during retirement.“

The insiders are more clearly seeing that early retirement might be desirable for individuals but that for many it is in truth affordable and realistic. Employers need to step up to better pension plans or plan to have workers much longer than what might be optimal for all parties.

Tuesday, November 12 at 11:55 am | Reply

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