VICTORIA – British Columbia has become the first province in Canada to create legislation for group pension plans to benefit the two-thirds of residents who can’t access such plans.
Finance Minister Mike de Jong introduced the Pooled Registration Pension Plans Act on Thursday, saying people are becoming more aware of the need to have sufficient means in retirement.
While de Jong admits it’s not the flashiest of subjects, having enough money starts to matter more as people get closer to retirement.
The plans would be managed by licensed financial institutions and focus on workers who don’t have a pension plan, including those who are self-employed.
Workers whose employers set up the pooled plan aren’t obligated to get involved and employers aren’t required to match contributions.
The bill is part of a national effort to make low-cost pension plans available to millions of Canadians who don’t have other plans, and follows on the heels of similar federal government legislation.