OTTAWA (Reuters) - The Canadian government said on Thursday it would temporarily ease requirements for corporate and personal pension funds because of sharply lower market prices.
It will reduce by 25 percent the amount seniors must withdraw from their Registered Retirement Income Funds for 2008, so that retirees can keep more in their RRIFs. Those who have withdrawn more than needed can recontribute the excess.
The government’s fall fiscal and economic update also proposed to allow federally regulated private pension plans to extend their solvency funding payment schedules from five to 10 years. Many sponsors would otherwise have been forced to make large special payments to top up their plans and divert funds from investment in growth.
Reporting by Randall Palmer; Editing by Frank McGurty