Federal budget ups pension plan limits

By Ian Genno
|hrreporter.com|Last Updated: 03/12/2003

Ottawa’s 2003 budget increases limits for tax-assisted retirement savings plans, as well as proposing changes to the employment insurance rate-setting process and announcing further funding for health care.

For HR professionals, there are a number of implications arising from these proposals. From a pension perspective, HR managers will need to consider the impact on plan costs, supplemental plan funding or security arrangements, DC RPP payout options, employee communication and plan administration. EI premium costs for 2004 will be reduced, and employers will need to consider how to handle the new compassionate family care provisions. And some help may be on the way in managing the costs of employer-sponsored health-care plans.

Tax-assisted retirement savings limits