Letter to the Department of Finance Re: Pension Innovation for Canadians: The Target Benefit PlanRelease Date: 06/23/2014 Staff Reference: Ronald Sanderson
June 23, 2014
Ms. Lynn Hemmings
Senior Chief, Payments
Financial Sector Policy Branch
Department of Finance Canada
140 O’Connor Street
Ottawa, Ontario K1A 0G5
Dear Ms. Hemmings:
Pension Innovation for Canadians: The Target Benefit Plan
I am writing on behalf of Canada's life and health insurance industry in respect of the captioned Consultation Paper, which was released on April 24, 2014.
Established in 1894, the Canadian Life and Health Insurance Association (CLHIA) is a voluntary non-profit association with member companies accounting for 99 per cent of Canada’s life and health insurance business. CLHIA members provide services to approximately two-thirds of private pension plans in Canada, primarily in defined contribution plans, and a larger proportion of other workplace savings arrangements such as group RRSPs. Our members are also significant providers of "retail" savings plans, including locked-in retirement accounts (LIRAs) and Life Income Funds (LIFs) that hold amounts transferred from workplace pension plans.
Because of our industry's current focus on defined contribution pension plans, successor arrangements such as LIRAs and LIFs, and group RRSPs, we will confine our comments to topics where we believe our experience is relevant. The numbered headings below correspond to those contained in the Consultation Paper.