CLHIA calls on Federal Government to prioritize VPLA rules, auto-enrolment reforms, pharmacare in pre-budget submission
September 29, 2025
Four years after Ottawa passed legislation supporting the development of Variable Payment Life Annuities (“VPLAs”), the Canadian Life and Health Insurance Association (“CLHIA”) has urged the Federal Government to move forward with regulations to make VLPAs available to more Canadians.
CLHIA has noted in recommendations in advance of the 2025 Federal Budget that, in its view, the legislation and regulations for VPLAs should be “principles-based, ensure sufficient scale, provide for a single Canada-wide pooled solution under both federal and provincial legislation to ensure a harmonized experience, and use market-based pricing.”
More specifically, in addition to transfers from defined contribution pension plans and pooled registered pension plans, the CLHIA’s desired VPLA framework would also allow funds from registered retirement savings plans, registered retirement income funds, deferred profit sharing plans, locked-in retirement accounts, and life income funds, in order to maximize the ability of Canadians to effectively secure a post-retirement income stream.
Aside from VPLAs, CLHIA’s submission also calls for the Federal Government to make legislative and regulatory amendments to permit employers to use automatic features within their voluntary workplace pension and savings plans and access to medication for those who do not otherwise have access to medication through prescription drug coverage.
Click ‘More Information’ below to review the CLHIA’s recommendations:
