Currently, many Defined Contribution (DC) pension plans are not permitted to pay a retirement income to their members. At retirement, members must use the money in their DC pension account to purchase an annuity or transfer it to a locked-in group or retail investment product.
The federal government amended the Income Tax Act to allow variable retirement income payments from a DC pension plan, much like a registered retirement income fund (RRIF).
The ACPM has been encouraging provincial governments to change their legislation to enable DC pension plans to make retirement income payments.
The ACPM's Advocacy and Government Relations Committee (AGRC) will continue to monitor this issue.