The Government of Canada has officially started consultations for a voluntary supplement to the Canada Pension Plan (CPP).

Ottawa released a consultation document on Monday and is seeking responses to eight questions.

Finance Minister Joe Oliver made clear that the government will not impose a mandatory CPP premium increase.

Read: Canadians prefer TFSAs, RRSPs over CPP expansion

“We believe in offering Canadians choice in retirement savings options,” he says. “What we do not believe in are reckless tax hikes that would kill jobs at the very time when Canadians need more jobs, not less.”

All Canadians are invited to provide feedback to the document by Sept. 10. The questions are:

  1. Do you believe a voluntary supplement to the CPP should be an option for Canadians to save for retirement? Is this something you would use to increase your retirement savings?
  2. How could a voluntary supplement to the CPP be designed to facilitate participation of individuals who may be at risk of undersaving for their retirement?
  3. How much flexibility should there be for individuals who choose to participate? For example, what are your views on locking-in funds for retirement and providing variability in the contribution rates?
  4. How could a voluntary supplement to the CPP be designed to provide a secure stream of retirement income?
  5. What retirement income options should be available upon retirement for savings accrued within a voluntary supplement to the CPP?
  6. Should transfers between a voluntary supplement to the CPP and other retirement savings vehicles be permitted? If yes, should there be any limits?
  7. While employers would not be required to contribute, what would be the appropriate role for employers?
  8. Who should be responsible for investing the contributions made to a voluntary supplement to the CPP?

Submissions can be emailed to cpp-consultations-rpc@fin.gc.ca.

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Copyright © 2021 Transcontinental Media G.P. Originally published on benefitscanada.com

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