Canada's Pooled Registered Pension Plans Act was passed by the House of Commons yesterday.
It seems the idea of expanding the Canada Pension Plan doesn’t die easily. The NDP hasn’t let it go, nor has the Ontario government who, with their March 27 budget, reiterated their preference for a “modest, phased-in expansion of CPP” over pooled registered pension plans (PRPPs).
The pooled registered pension plan (PRPP) announced by the federal government last year is the first step in the reforms needed to extend pension coverage to the more than 60% of the Canadian workforce not currently enrolled in a workplace plan. However, as the Ontario government hinted in its recent budget, there are a number of challenges with the PRPP design.
One of the touted benefits of pooled registered pension plans (PRPPs) is that they involve an off-loading of fiduciary duty. The employer just has to select and monitor the administrator and have the payroll system remit the contributions. The administrator, acting as a trustee for the members, is responsible for everything else.
In the provincial budget tabled yesterday, the Ontario government stated that it has several concerns with the federal model of pooled registered pension plans (PRPPs) as currently proposed, including the worry that PRPPs may simply replace one form of retirement coverage, rather than expanding retirement income savings.
Yesterday, the Quebec government tabled its 2012 budget, which included detailed provisions for the voluntary retirement savings plan (VRSP). The VRSP is Quebec’s version of the pooled registered pension plan (PRPP).
The majority of Canadians lack retirement security and the federal government’s proposed pooled registered pension plan (PRPP) will do little to reduce risks for these individuals, according to a new study from the Institute for Research on Public Policy (IRPP).
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 new pooled registered pension plan (PRPP) legislation has been on a roller coaster of support and criticism over the past year—and it hasn’t even come into force yet.
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).