NIA's study reveals missing pension members leave billions unclaimed, urging coordinated action
The National Institute on Ageing (NIA) has released a significant report titled ‘Missing Pension Plan Members in Canada,’ addressing the challenges associated with unclaimed pension benefits.
The report sheds light on the growing issue of missing pension plan members and its impact on both plan administrators and individuals entitled to these funds.
Canada’s ageing population and the increasing complexity of pension systems have amplified this concern.
The report highlights that nearly 200,000 pension plan members registered in Ontario alone are considered missing, leaving $3.6bn in unclaimed entitlements.
The NIA’s research identifies obstacles and offers solutions to reconnect Canadians with their rightful pension benefits.
Doug Chandler, associate fellow of the NIA, emphasised the need for collective action, stating, “This report underlines the importance of a coordinated national effort to help Canadians access their missing pensions. These pensions are part of their hard-earned compensation, and the pension industry needs to work together to ensure they don’t go uncollected.”
Missing pension plan members are individuals who pension administrators cannot contact due to outdated information or complications such as the death of the plan participant.
While countries with private pension systems worldwide face similar challenges, Canada’s multi-jurisdictional regulatory approach introduces unique complexities.
The report draws on international examples to provide insights while focusing on the Canadian context.
The report evaluates three policy options. It considers principles such as data privacy protection and reducing administrative burdens for plan administrators and governments. Additionally, it focuses on effectively reconnecting individuals with their pensions and safeguarding entitlements.
Rather than endorsing a single solution, the report proposes a decision-making framework to guide efforts in addressing this issue.
Collaboration is central to the report’s recommendations, calling for coordinated actions from government agencies, plan sponsors, financial institutions, third-party administrators, and other stakeholders.
Alyssa Brierley, executive director of the NIA, emphasized the benefits of addressing the issue of missing pension plan members.
She stated that resolving this problem reunites individuals with their rightful funds, clears legacy issues for plan administrators, and generates tax revenue for governments when the funds are distributed.
Brierley described the report as “a foundation for engaging all the stakeholders in developing a collaborative solution.”
