CARP Submission on Pension Reform: Ontario Ministry of Finance

III. Plan Features Designed to Minimize Risks Associated with Large, Private, Multi-employer Plans

3. Newly created supplementary pension plans should be universally available to the employed, self-employed, and even the unemployed, regardless of whether the employer has enrolled in the plan. Similarly, the plans should be mandatory or based on auto-enrolment, with the possibility for individual opt-outs.

4. Savings adequacy should be an integral goal of a multi-employer pension plan.

5. Supplementary MEPPs should offer defined benefits, which are superior to defined contribution plans in cost/benefit and resistance to market fluctuation.

6. Supplementary MEPPs should operate under regulated maximum Management Expense Ratios (MER) and have governance and accountability mechanisms that properly balance the interests of employers, employees, and retirees.

7. Supplementary MEPPs should be of a sustainable size and offer benefit portability to plan participants.

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Keywords: pension reform, CPP, income, plans