Federal budget tackles workforce shortages, aging population

What HR practitioners and employers need to know about the federal budget
By Ian Genno and Karen Tarbox
|hrreporter.com|Last Updated: 03/28/2007

The Honourable Jim Flaherty, Minister of Finance, tabled his second federal budget on March 19, 2007. The budget includes proposals that begin to address potential workforce shortages and aging population issues faced by employers.

Phased retirement

The budget announces that sponsors of defined benefit (DB) registered pension plans (RPPs) will be permitted to give members the option to receive partial pension payments while continuing to work and accrue further pension benefits. Such flexibility is not permitted under current tax rules —except for defined contribution RPPs.