Department of Finance Announces Measures to Increase Pension Funding

Department of Finance Canada announced new incentives for private sector and pension fund investment to boost growth and create good jobs. A news release for the 2024 Fall Economic Statement includes a set of proposals that create an investment environment for pension funds to invest in Canadian businesses by unlocking investment opportunities and removing investment barriers. The government is proposing to:

• Remove the 30 per cent rule that currently restricts Canadian pension funds from owning more than 30 per cent of the voting shares of a Canadian entity;
• Crowd in private venture capital by launching a fourth round of the Venture Capital Catalyst Initiative with $1 billion in funding and more enticing terms for pension funds and other institutional investors;
• Bolster access to capital for mid-cap companies by providing up to an aggregate of $1 billion in concessional financing. These investments will be equal to 25 per cent of net new private investments;
• Secure Canada’s AI advantage by developing a program that would provide up to $45 billion in aggregate loan and equity investments for AI data centre projects in which Canadian pension funds are significant investors; and,
• Attract investment for better airports by working with airports and pension funds to incentivize development on airport lands, including by exploring potential changes to airport authority ground leases.

More details will be announced in the release of the 2024 Fall Economic Statement on December 16, 2024.