CLHIA recommends New Brunswick amend pension regulation to promote retirement income sustainability and harmonization with other jurisdictionsRelease Date: 07/29/2015 Staff Reference: Ron Sanderson
July 29, 2015
Mr. Rick Hancox
Chief Executive Officer
Financial and Consumer Services Commission
225 King Street
Updating Pension Regulations to Promote Retirement Income Sustainability
Dear Mr. Hancox:
I am writing on behalf of Canada's life insurance industry to recommend a simple regulatory amendment to reduce the risk that former members of pension plans regulated under New Brunswick law will outlive their retirement savings.
This recommendation is consequential to changes to the federal Income Tax Regulations that were proposed in the 2015 federal budget, and which received Royal Assent on June 23, 2015. These changes are incorporated by reference in pension regulations in all provinces except New Brunswick. In contrast, New Brunswick's Regulation 91-195 explicitly incorporates text from an earlier version of the federal measures. The operation of the particular measures is described below.
We recommend that New Brunswick amend Regulation 91-195 to (i) reflect the updated formula and factors contained in the new federal measure and, ideally, (ii) incorporate the updated federal provision by reference, thereby ensuring harmonized rules with the rest of Canada in the future...