Staff
The Honourable Ted Menzies, Minister of State (Finance), today spoke at a C.D. Howe Institute roundtable in Toronto on how the introduction of Pooled Registered Pension Plans (PRPPs) will bridge gaps in Canada’s retirement income system.
“Canada’s Finance Ministers have agreed to proceed with a framework for the introduction of a new kind of pension plan, the PRPP,” said Minister Menzies. “The PRPP is a targeted way to help millions of Canadians who have not previously had access to a large-scale, low-cost company pension plan.”
The design features of PRPPs will address barriers that might have kept some employers in the past from offering pension plans to their employees. Menzies pointed to the following advantages:
- By pooling pension savings PRPPs will offer greater purchasing power, achieving lower costs than would otherwise be available.
- Professional administrators will be subject to a fiduciary standard of care to ensure that funds are invested in the best interests of plan members.
- PRPPs are intended to be largely harmonized from province to province, which will further lower administrative costs.
- The organization of these plans will also be straightforward to allow for simple enrollment and management.
More to come.