IFB Comments on Voluntary CPP Supplement
The federal Department of Finance issued an initial consultation paper to gather input on whether Canadians should be able to supplement their savings, by making additional voluntary contributions to the CPP. The consultation paper had few details of how such a system would work.
IFB responded to the consultation, expressing our view that while such a plan may be attractive to some individuals, it may be expensive to operate and administer, as these additional contributions would have to be tracked separately from required employment-related CPP contributions.
To address the government’s concern about under-saving by some individuals, a better solution would be to improve some of the tax-assisted retirement savings programs already in place.
To read our entire response click here