Employers Ready for a Mandatory New Pension Plan
Results of 60-Second Survey for January 2014
TORONTO, Jan. 24, 2014 /CNW/ - Morneau Shepell's 60-Second Survey for January 2014 suggests that if the provinces adopted a new pension plan to supplement the Canada Pension Plan (CPP), employers would prefer that participation be mandatory. The survey received responses from 73 employers across Canada.
If their province were to introduce a new defined contribution plan to supplement the CPP, a plan that required employee and employer contributions was favoured by employers by a margin of nearly two to one over auto-enrolment with the ability to opt out. The preferred mandatory DC plan would require employees to contribute only on earnings over $25,000 rather than on the first dollar of earnings.
"I think what we are witnessing is pension reform fatigue," said Fred Vettese, chief actuary of Morneau Shepell. "For the last seven years, employers and the public at large have been bombarded with white papers and public consultations on pension reform. Now they just want their governments to get on with it. There is a greater appetite among employers than we thought for a mandatory new plan that requires both employer and employee contributions."
About the 60-Second Survey
For more than 10 years, the results of Morneau Shepell's web-based "60-Second Surveys" have provided insights into the opinions of Canadian pension and benefits plan sponsors on high profile issues.
About Morneau Shepell Inc.
Morneau Shepell is the largest company in Canada offering human resources consulting and outsourcing services. The Company is the leading provider of Employee and Family Assistance Programs, as well as the largest administrator of retirement and benefits plans. Through health and productivity, administrative, and retirement solutions, Morneau Shepell helps clients reduce costs, increase employee productivity, and improve their competitive position. Established in 1966, Morneau Shepell serves more than 8,000 clients, ranging from small businesses to some of the largest corporations and associations in North America. With approximately 3,300 employees in offices across North America, Morneau Shepell provides services to organizations across Canada, in the United States, and around the globe. Morneau Shepell is a publicly-traded company on the Toronto Stock Exchange (TSX: MSI). For more information, visit morneaushepell.com.
SOURCE Morneau Shepell Inc.