Investment officials want Government to review its tax policy on private pension schemes. They complain that the absence of tax incentives has been a disincentive to people wanting to invest in Registered Retirement Savings Plans (RRSPs).Principal and Consulting Actuary with Eckler Lisa Wade said given that people were no longer getting a concession on these pension plans, they have “reduced their level of voluntary contributions”.“What happens is that when you choose to join your employer’s pension plan most employers’ pension plans require you to pay something into them. That is called your compulsory contribution.“When the tax incentives were there most people topped up those even more with voluntary contributions which helped to ensure that when they reach retirement they would have a higher pension which would help them ride out any storm that would take place such as inflation.
