Canadian small business owners are enthusiastic to adopt the new Pooled Registered Pension Plans (PRPPs), according to a poll of more than 800 companies by the Canadian Life and Health Insurance Association (CLHIA).
Of those companies surveyed who do not currently offer a pension plan, 68% said they are interested in providing PRPPs.
“Small and medium-sized business executives are ready to embrace PRPPs as they look for new ways to keep employees and attract new people,” said Frank Swedlove, president, CLHIA. “We are on the cusp of making a fundamental shift in the pension landscape.”
The poll also showed that 71% of respondents agree that employers should be required to offer some form of retirement plan to employees. Support for making PRPPs was highest among those who already have a plan (79%), yet still strong (66%) among those who do not have a plan.
Even though it is not mandatory for employers to contribute to the PRPPs in the current legislation, 73% of respondents interested in providing PRPPs said they will “look at ways their business could contribute to the plan over and above what the employee puts into it.”
Two-thirds of survey participants believe that their employees will be interested in participating in PRPPs.