CANADA - Quebec has become the first Canadian province to introduce a new pension programme for workers who don't have their own retirement savings.
Announcing his 2011-12 Budget on Thursday, Finance Minister Raymond Bachand outlined the launch of Pooled Registered Pension Plans, which will be managed by financial institutions but offered by businesses that do not currently have private plans.
Similar plans are expected to be rolled out across the rest of Canada and could be announced in next week's federal budget.
Under the plans, Quebec businesses would have to offer the programme to workers, more than half of whom are not currently covered by private pensions. Employees would not be required to join, however.
"If Quebecers wish to maintain their standard of living in retirement they must save more," Bachand said in his budget speech. "Everyone is responsible for the financial resources they have at their disposal upon leaving the labour market."
He added: "I hope that the federal government will announce . . . the tax legislation amendments necessary to implement these new plans."
Over the next 15 years, the working-age population in Quebec is expected to fall by 3.8%, while rising by 5.5% across the rest of Canada.
In order to reduce the number of retirees, Quebec is following a recent move by the Canada Pension Plan to increasingly penalise workers if they take their pension before they are 65 and rewarded for each year they wait afterward.
This week's edition of Professional Pensions is out now.
The government is in talks with the UK and Irish pensions regulators over how to protect members of cross-border schemes in the event of a no-deal Brexit.
The equalisation of guaranteed minimum pensions (GMPs) is at least two years away from being completed, and could take longer than four years for some schemes, a poll has found.
The Pensions Regulator will consider if schemes should be required to have professional trustees and assess the case for greater regulation of administrators and system providers, PP can reveal.