The federal government this morning introduced the much-anticipated Pooled Registered Pension Plans (PRPP) Act to address concerns over declining pension coverage for Canadians.
Like most western countries, the level of pension savings in Canada is a major issue for the government, and increased life longevity is driving concerns about how Canada can provide for its senior citizens in the future.
An article entitled “A nudge and a wink” in the Economist last April observed, “Governments are trying to ‘nudge’ people into doing what is good for them.” Around the world, governments are trying to force people, for their own good, to save more for retirement. They are expanding programs and using techniques such as auto-enrolment […]
The trend toward DC plans creates a host of new challenges: for plan sponsors, whose members look to them for investment information; for governments under increasing pressure to ensure that Canadians have sufficient income in retirement; and for Canadians themselves, who need to take the initiative to ensure that they’re able to save a suitable […]
The Canadian Labour Congress has openly criticized the federal government’s plans to push ahead with its Pooled Retirement Pension Plan, calling it a “lemon.” Meanwhile, Hon. Ted Menzies, minister of state (finance), has embarked on a cross-country blitz to promote the plan, despite not being able to offer details about how it will work. “Minister […]
The federal government has launched a campaign to encourage adoption of pooled registered pension plans (PRPPs), as Ted Menzies, Minister of State (Finance), used a Toronto small business as a backdrop to extol the plan’s virtues. “PRPPs will play a critical role in improving the range of retirement savings options available to Canadians by providing […]
Watch this video Since the announcement of pooled registered pension plans (PRPPs) by the Federal government, plan sponsors and industry experts have been supportive of the idea. However, everyone is curious, and a bit cautious, to see just how they will work in practice. Frank Swedlove, president of the Canadian Life and Health Assurance Association, […]
Watch this video What will pooled retirement pension plans mean for employers? Or for employees? Will Canadians voluntarily save more for retirement if the PRPP is introduced? Greg Heise, partner with Morneau Shepell, says that while implementing PRPPs would bring several advantages to both employees and employers, “I don’t think necessarily just the existence of […]
The federal government’s December 2010 announcement of the pooled retirement pension plan (PRPP) arrangement has been the most significant piece of pension reform introduced in Canada since discussion on the topic increased following the 2008 economic crisis, according to a panel speaking at the Benefits & Pension Summit, held in Toronto last week. The panellists, […]
The Framework for Pooled Registered Pension Plans, released by the Department of Finance in December 2010, suggests that the introduction of pooled registered pension plans (PRPPs) would improve the retirement savings system by providing an “accessible, straightforward and administratively low-cost retirement option,” particularly for the self-employed and employees of small and medium-size businesses who currently […]