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Governments are not doing enough to support employer-sponsored defined contribution plans, says Advocis, The Financial Advisors Association of Canada. In a report released today, Advocis concludes that there must be more opportunities for Canadians to participate in pension plans and that can only happen if governments help out.

“Only one-third of Canadian employees are in a pension plan and participation is declining,” said Greg Pollock, president and CEO of Advocis. “Canadians’ retirement savings will inadequately finance their retirement at a time when life expectancy is increasing. There is a tidal wave of baby boomers reaching retirement who are living longer and on much less.”

Advocis believes that public policymakers can eliminate the barriers by improving the regulatory environment, harmonizing regulations and facilitating mandatory enrolment for employees, with opt out provisions.

pension plans would become even more attractive if the government offered tax incentives, including:

• increasing the age limit for contributions from 71 to 73 • determining contribution to retirement savings plans based on a life-time average • allowing past service contributions up to the limit of the employee’s unused RRSP contribution room

Advocis argues that DC plans are the best option because of their portability, flexibility, and affordability.

They are not contingent on the accumulation of years of service with an employer, can accommodate non-standard work arrangements and can be postponed or included as phased-in retirement.

“Clearly, the message is something has to change,” said Pollock. “Canadians need to have the tools to plan for their retirement.”

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Sun Life names new CIO

Sun Life Financial has announced the appointment of Stephen C. Peacher as executive vice-president and chief investment officer, effective October 13, 2009. He succeeds James M.A. Anderson, who retired earlier this year.

Peacher joins Sun Life with over twenty years of credit and investment management experience in North American and international markets. He most recently served as managing director, head of fixed income and liquidity strategies at Columbia Management.

“Steve has an impressive background in managing credit and bond portfolios that make him an excellent choice as our new Chief Investment Officer,” says Donald A. Stewart, CEO of Sun Life. “He brings a disciplined and results-oriented approach which is a strong match with the strengths and discipline of our investments team.”

As CIO, Peacher will oversee Sun Life’s invested asset portfolio, which had assets of $108 billion at June 30, 2009.

(09/17/09)