Pension plans could become an election issue for the federal Liberal party.

A proposal obtained by the New Democratic Party and presented to the Liberal caucus suggests a voluntary supplemental pension plan and reduction in the limit of one year retroactive payments for late claimants of Canada Pension Plan (CPP) benefits could be in the works as one of their election platforms.

According to the plan, people who are late claiming their CPP benefits should be allowed to claim up to five years in retroactive benefits if they file late.

The plan also recommends a first ministers meeting to formulate a strategy to deal with retirement and pension plan issues. The oldest of the baby boomer generation will turn 65 in 2011 and that will spark a surge of unprecedented retirements.

An advocate of a voluntary supplemental pension plan, Liberal leader Michael Ignatieff received the 39-page proposal on Oct. 13. It was distributed to caucus members this week and will be made public soon.