- Does your party favour continuing bank in-branch retailing of insurance restrictions?
- What is your party’s overall position on pension and retirement income reform?
- Does your party support pension reforms that would incorporate the ability of Canadians to access professional financial advice in order to make informed decisions about their retirement needs?
Responses from the Parties:
Does your party favour continuing bank in-branch retailing of insurance restrictions?  New Democrats are in favour of continuing these provisions in order to ensure the best protection possible for Canadian consumers.
 Our Conservative Government has a proven record of ensuring Canada continues to enjoy the soundest banking system in the world, and ensuring consumers’ interests are put first when it comes to financial services. We believe that competition in the financial services sector will result in better products and services for Canadian families. In Economic Action Plan 2013, our Government committed to encouraging competitive financial services and ensuring that federal legislation and regulations align with that objective. A re-elected Conservative Government will undertake the next statutory review of the Bank Act and related financial legislation with this objective at the forefront.
The Liberal Party of Canada supported the decision to uphold the regulatory restrictions during the most recent review of the Bank Act.
What is your party's overall position on pension and retirement income reform? New Democrats support a gradual doubling of the Canada Pension Plan and immediately returning the age of eligibility for Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) back to 65 from 67. We have also committed to boosting the GIS by $400 million to help ensure that no senior ever has to live in poverty. Our low-tax plan for Canadians is helping ensure that they keep more of their hard earned money. Thanks to our tax cuts and benefits, Canadian families keep up to $6,600 more now than they did before we formed government. These savings can directly help Canadians save for retirement. In addition, we have created the options for Canadians to participate in Pooled Retirement Pension Plans, which can provide a new, accessible retirement savings option for individuals, including those who are selfemployed, and are fully portable as individuals move through changing careers.
In our most recent budget, we improved the rules around Registered Retirement Income Funds to allow seniors to preserve more of their retirement savings and better meet their retirement needs. As well, our Conservative government introduced the most important new tool to help Canadians save for retirement: Tax-Free Savings Accounts. We brought in this powerful and flexible savings option in 2009, and nearly 11 million Canadians had opened an account by the end of 2013. Tax-Free Savings Accounts provide significant help to lower- and middle-income Canadians, and individuals at or near retirement have taken advantage of this tool. That's why, through Economic Action Plan 2015, we enhanced Tax-Free Savings Accounts to allow Canadians to save even more each year. Individuals aged 65 or over stand to benefit the most.
Canadians are worried that they cannot save enough for retirement. A Liberal government will work with the provinces and territories to enhance the Canada Pension Plan to help ensure retirement security for all Canadians. The Conservatives have turned their back on middle class families who are struggling to save for retirement and are actively fighting provinces like Ontario who are trying to go it alone in the absence of federal leadership. A gradually phased in, fully funded enhancement of the CPP is the best way to help ensure that today's working Canadians can retire with a secure public pension. A Liberal government will also reverse the Harper government’s OAS clawback and return the OAS eligibility age to 65 from 67. We will keep income splitting for seniors' pensions.
Does your party support pension reforms that would incorporate the ability of Canadians to access professional financial advice in order to make informed decisions about their retirement needs? New Democrats are strongly supportive of efforts to increase Canadians’ access to basic financial literacy tools and professional financial advice.
We believe that Canadian workers and employers should have choices about how to best save for an individual's retirement. We also believe Canadians should remain free to access professional financial advice in order to make informed decisions about their retirement needs. In addition to our low-tax plan and the new savings tools we have introduced while in government, we committed to explore allowing additional contributions to the Canada Pension Plan, on a voluntary basis. In July, our Conservative government launched consultations with individuals, business stakeholders and retirement income exports on how additional, voluntary contributions to the Canada Pension Plan would be most effectively designed.
Small business owners in particular have been clear about the economic dangers of mandatory CPP payroll tax hikes. We share those concerns and are the only party who opposes the irresponsible policies, and mandatory one-size-fits-all solutions being advocated by Trudeau and Mulcair. The Liberal and NDP plans both involve massive jobkilling, economy-destabilizing payroll tax hikes. Justin Trudeau has said he supports and would nationalize Kathleen Wynne's ORPP, which will inflict businesses and workers with thousands of dollars in new payroll taxes, squeezing their business and family budgets. Our Conservative government has refused to cooperate with the Liberals' plan to raise payroll taxes in Ontario, and we will continue to do so.
The Liberal Party of Canada recognizes the value of professional financial advice in helping Canadians save for their retirement and would certainly consider ways of encouraging and enhancing Canadians’ access to these services.
Summary of other relevant election promises important to financial advisors: Conservative Party of Canada - A re-elected Conservative government will introduce a $2,000 Single Seniors Tax Credit that will extend additional tax relief to nearly 1.6 million single and widowed seniors in Canada who have pension income. When combined with the existing Pension Income Credit that is claimed by 4.6 million seniors already, this measure will allow single and widowed seniors to receive up to $600 in tax relief every year.
- Expanding the Home Buyers’ Plan from $25,000 to $35,000 so first-time home buyers can withdraw more RRSP savings tax-free to make their down payments and reduce their mortgages and interest payments.
- Maintain increased annual contribution limit for tax-free savings accounts (TFSAs) to $10,000 from $5,500.
- A re-elected Conservative Party pledged to run a balanced budget.
- Expanded family allowance (Universal Child Care Benefit), now totaling $4.4 billion a year.
- Reduce small business tax rate from current 11 per cent to 9 per cent by 2019.
- Reduce minimum withdrawal factors for Registered Retirement Income Funds.
- Study ways for Canadians to make voluntary add-on contributions to the Canada Pension Plan.
- To help manufacturers, brought in a 10-year extension of the accelerated capital cost allowance, a tax break for buying new equipment.
- Lower Employment Insurance premium rate in 2017.
New Democratic Party of Canada - Cancel income-splitting for families.
- Raise corporate income tax rates from 15 per cent to 17.5 per cent while reducing small business taxes from 11 per cent to 9 per cent.
- Cancel the increase in the Tax-Free Savings Account annual contribution limit to $10,000 from $5,500.
- Keep expanded family allowance. Reinstate $15-per-hour federal minimum wage.
- Supports reduced minimum withdrawal factors for Registered Retirement Income Funds.
- On balancing Ottawa’s budget, Leader Thomas Mulcair says that an NDP government will not run deficits, but rather make different choices than the Conservatives to balance the budget.
- Reverse Conservative plan to phase out tax credit for investment in labour-sponsored venture capital corporations.
- Extend for two years the accelerated capital cost allowance for machinery and equipment.
- Create an innovation tax credit for businesses that invest in machinery, equipment or property used for research and development.
Liberal Party of Canada - Reduce income taxes for middle-class from 22 per cent to 20.5 per cent - defined as those with incomes between $44,700 and $89,400 a year.
- Raise income taxes for those making over $200,000 annually to 33per cent.
- Liberal Leader Justin Trudeau has promised to run a $10 billion deficit in order to stimulate the economy.
- Create new family support plan called the Canada Child Benefit, which would combine the Conservatives' family allowance program and other federal assistance plans with the aim of increasing overall family benefits for most families.
- The Liberals would cancel the Conservatives' income-splitting tax measure and scrap the Conservatives’ increase in the Tax-Free Savings Account annual contribution limit to $10,000 from $5,500.
- Cut small business taxes but want to ensure doing so does not disproportionately benefit the wealthy.
- Support reduced minimum withdrawal factors for Registered Retirement Income Funds.
- Cancel Conservative plan to raise the age of eligibility for Old Age Security benefits to 67 from current 65. Reverse Conservative plan to phase out tax credit for investment in labour-sponsored venture capital corporations.
KEY CONTACTS For more information, please contact:
| Peter Tzanetakis
VP, Government and Corporate Relations
ptzanetakis@advocis.ca
Tel: 1-800-563-5822, Ext. 9813 | Juno Da Silva
Executive Assistant, Government and Corporate Relations
jdasilva@advocis.ca
Tel: 1-800-563-5822, Ext. 9860 | Andrew Kimber
Manager, Government Relations
akimber@advocis.ca
Tel: 1-800-563-5822, Ext 9817
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(The Institute™), CLU®, CHS™, and APA® are trademarks of The Financial Advisors Association of Canada (TFAAC)
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