HR implications of 2005 federal budget

By C. Ian Genno
|Canadian HR Reporter|Last Updated: 03/28/2005

On Feb. 23, Ralph Goodale, federal Minister of Finance, tabled his second budget. The budget contains a number of positive announcements relating to employers’ HR interests — in particular, the elimination of the foreign content limit and an increase in the contribution and maximum benefit limits for registered retirement savings and pension plans. (The following is an abridged version of the 2005 budget review. For the full analysis go to www.hrreporter.com click on “Advanced Search” and enter article # 3706 or click on the related articles link below.)

Elimination of the foreign content limit

The budget eliminates the 30-per-cent foreign content limit for registered retirement savings and pension plans, effective for 2005 and subsequent years. Registered plan assets may now be invested in foreign investments without limit.