November 22, 2017
Partner and chair of the Pensions and Employment Practice Mitch Frazer has contributed to a Benefits Canada story around pension portability.
The article discusses a range of issues and topics to do with the portability of pension plans, including transferring defined benefit assets, tax limits, and unlocking.
Mitch told Benefits Canada the main issue had less to do with portability and more to do with the unlocking of pension plans.
“So the big debate is whether people should have the ability to unlock [and] how portable should it be? I don’t think there’s a big concern, in terms of portability. . . . It’s not a black or white topic. There are benefits and drawbacks to whatever course of action you take," he said.
“It’s philosophical; it’s what do you believe a pension plan should be. Is it something that everyone should be entitled to or simply a benefit used to retain talent? And if so, is it something you believe the company should be dictating you can’t take the money out or should it be something where you put it into a group RRSP and pull out the money any time you want? It’s a very interesting debate.”
You can read more about Torys’ Pension and Employment Practice here.