Older British Columbia Workers
Amendments to the Pension Benefits Standards Act (PBSA) will give British Columbians more flexibility and choices when planning for their retirement, Finance Minister Carole Taylor announced today.
“More than a quarter of
Individuals may now choose to begin receiving their pension at age 71, up from the previous maximum pensionable age of 69. This will give older workers the option to stay in the workforce longer if they so choose while they continue to build their retirement savings. The increase in the maximum pensionable age will apply to pension plans registered under British Columbia’s PBSA and will be retroactive for the 2007 calendar year. It will also apply to RRSP and life income funds that consist of funds transferred from B.C. registered pension plans.
In addition, amendments will allow B.C. registered pension plans to provide phased retirement benefits. Individuals aged 60 or over, or 55 and over and eligible for an unreduced pension, will be able to work and contribute to their pension plan while simultaneously collecting a portion of their pension benefits. Currently, older workers must choose between collecting a pension or contributing to their pension plan.
The Pension Benefits Standards Act helps protect the interests of pension plan members by setting minimum standards for pension plans registered in British Columbia. Many of the PBSA’s provisions are linked to federal income tax rules to take full advantage of preferred tax status made available to registered pension plans.
British Columbia and Alberta are currently working together on a comprehensive review of pension standards to ensure pension plans continue to benefit workers, employers and investors. The Joint Expert Panel is scheduled to present its final report to both governments in September 2008.
No comments:
Post a Comment
Your comment will appear after moderation before publishing,
Thank you for your comments.Any comment that could be considered slanderous or includes unacceptable language will be removed.
Thank you for participating and making your opinions known.
Note: only a member of this blog may post a comment.