CALU has recently made a submission to Finance regarding the proposals contained in the 2011 Federal Budget relating to Individual Pension Plans (IPPs). It is CALU’s belief that, if enacted, the proposals will unfairly impact small business owners and key employees, who are attempting to save for retirement through a defined benefit plan arrangement.
In its submission, the Association outlines the basis for these concerns and makes recommendations on how to move forward in a manner that addresses Finance’s concerns while preserving the overall benefit of these plans for small business owners and their key employees.
It should be noted that this legislation has now been released as Bill C-13, which is being considered by the House of Commons. One of the key IPP provisions has been modified and offers some relief from the original proposals. However, CALU continues to be concerned with the IPP legislation and the apparent trend of placing restrictions on owner/managers participating in employee benefit and retirement plans in a manner similar to senior executives in larger private and public companies.