For improving the retirement, savings and income system in Canada
Sun Life Financial has proposed a multi-employer defined contribution (DC) pension plan for all working Canadians, which will allow every employer, including the self-employed, to automatically participate and increase pension coverage.
Tom Reid, senior vice-president of Group Retirement Services, said: With three to five million Canadians not having access to an occupational pension plan, we need to improve the retirement, savings and income system in Canada, opening the door to expanded workplace participation for all Canadians.”
As per the proposal, Mr Reid said that the employers who decide to join the DC plan would select a qualified provider and all the firm’s employees would automatically be enrolled. There are various factors that will determine the cost of the proposed solution, such as participation rates, annual deposits and asset balances.
Mr Reid said: Canadian providers for workplace retirement savings plans today have a proven track record, technology and operating systems, governance structures and consumer insights. They also have the distribution network to reach small and mid-size employers, and the motivation to help expand coverage.