Briefly: BMO: Reform retirement savings and more

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A new BMO Retirement Institute report asks the Canadian government to make reforms aimed to give Canadians more control over their retirement savings.

“BMO’s view is that the personal savings component cannot be ignored when looking at how we can improve the current pension regime,” said Tina Di Vito, head of BMO Retirement Institute, BMO Financial Group. “We believe an approach based on the principle that individuals should have the flexibility to take control of their retirement savings will benefit Canadians and have an immediate positive impact on baby-boomers on the verge of retirement.”

The political reforms the report recommends include:

• The removal of age restrictions for Registered Retirement Savings Plans.
• The reduction of taxed on Registered Retirement Income Fund (RRIF) withdrawals.
• The ability to rollover RRSP and RRIF accounts tax-free in case of death.
• An increase to the maximum annual RRSP contribution limit.

To view the entire BMO Retirement Institute report, click here.

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QESI now available to Fidelity RESP customers

Fidelity Investments Canada ULC announced that as of today, qualified holders of Fidelity Registered Education Savings Plan (RESP) accounts will be able to access additional government funding for their children’s and grandchildren’s education through the Quebec Education Savings Incentive (QESI).

The QESI incentive is a refundable tax credit that is paid directly into a qualified RESP. A designated RESP trustee must apply to Revenu Quebec to request QESI on a RESP holder’s behalf.

“Tens of thousands of dollars are available to parents through federal and provincial educational granting programs,” said Charles Danis, vice president, regional sales for Fidelity Investments Canada ULC. “By the time your child is ready for post-secondary education, parents could realize over $25,000 in savings all without spending a penny of their own. Plus, your investment in your child’s future is tax-sheltered.”

TD extends Green Mortgage rebate to include solar panels

In honour of Earth Day, TD Canada Trust has announced that its Green Mortgage rebate will now include benefits for homeowners who install CSA approved solar panels on their homes. This incentive is aimed to make the transition to energy-efficient homes more affordable for Canadians.

“Energy prices are only going to go one way, and that is up, so homeowners will be looking for ways to reduce costs,” said Karen Clarke-Whistler, chief environment officer at TD. “With an increasing number of provincial government-backed incentive programs being rolled out across the country, we expect the solar products market to evolve rapidly.”

TD Green Mortgage or TD Green Home Equity Line of Credit (HELOC) customers receive 1% off of the posted interest rate on a five-year fixed rate loan. In addition, customers receive a rebate of up to 1% of their mortgage (or fixed rate portion of their HELOC) if they purchase qualified Energy Star ® products or, as of today, CSA approved solar panels.

On a related note, a recent Angus Reid poll commissioned by TD, the TD Canada Trust Green Home Poll, showed that over a quarter of Canadian homeowners have recently updated their homes to make them more energy efficient. Of those, 88% are happy with the results and 66% of respondents said that tax credits make it more likely that they will make energy efficient upgrades to their homes.

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Scotiabank’s Commodity Price Index makes small gains in March

Canada’s major exports edged up 0.3% month-over-month in March, according to Scotiabank’s Commodity Price Index, which measures 32 Canadian exports. This slight increase is further proof that the global economy is in recovery mode.

“Month-to-month fluctuations have recently reflected the ebb and tide of investor sentiment for a broad-based global economic recovery, with risk appetite for commodities returning in March,” said Patricia Mohr, vice-president, economics and commodity market specialist at Scotiabank.

“The release of U.S. employment data showing a 162,000 gain in payrolls in March, the first significant employment increase since November 2007, boosted commodity prices significantly the week of April 6 – especially base metals and oil.”

According to the index, in March, the Metal and Mineral Index gained 5.6% m/m; the Oil & Gas Index was down 6.5% m/m; the Forest Products Index was up 1.4% m/m; and the Agricultural Index lost a marginal 0.3% m/m.

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Scotiabank named Canada’s most reputable bank

Scotiabank was named Canada’s most reputable bank in a recent study published in Canadian Business Magazine.

The joint initiative by Canadian Business Magazine and Reputation Institute is the first of its kind in Canada. A similar study in the U.S. by Research Institute and Forbes Magazine has ranked reputation of major American companies for several years.

For the study, 2,200 Canadians were asked to give their opinions on 50 of Canada’s largest companies. Categories included reputation, ethics and transparency, innovation and corporate citizenship.

Scotiabank was voted into the top 20 overall and was the highest scoring bank. They were also ranked number one among Canadian banks for corporate citizenship.

“In the wake of the recent global financial crisis, reputation has become even more important to organizations seeking to attract and retain customers, employees, and shareholders,” said Rick Waugh, president and CEO of Scotiabank.

“Scotiabank has always placed very high value on how we are viewed by our stakeholders, and today’s announcement reinforces that we are on the right track.”

(04/22/10)