A new report released by the C.D. Howe Institute today says that Ottawa should rethink the tax rules for pooled registered pension plans (PRPPs) if they want the retirement savings vehicle to be effective.
Pooled registered pension plans (PRPPs) will be attractive to employers that wish to shed the risks associated with the fiduciary obligations for employers that offer traditional retirement programs. The new draft PRPP regulations, released on August 13, further stack the deck in favour of employer abandonment of RPP sponsorship by baldly permitting employers to demand, or PRPP providers to offer, inducements to transfer membership and assets from traditional plans to a PRPP.
The pooled registered pension plan (PRPP)—proposed by the federal government in response to the lack of pension coverage across Canada—may also help to resolve employers’ concerns about the costs and administrative burden of offering retirement savings plans to employees.
The federal government has prepublished regulatory proposals to address provisions of the Pooled Registered Pension Plans Act (Bill C-25), says Ted Menzies, Minister of State (Finance).
Standard Life has launched a new website offering information on pooled registered pension plans (PRPPs) and its Quebec counterpart, voluntary retirement savings plans (VRSPs).
The Canadian Bankers Association (CBA) is calling on the provinces and territories to enact legislation that would provide access to pooled registered pension plans (PRPPs) for small businesses and the self-employed.
In the simplest of terms, they all use discretionary investment managers to make financial decisions on their behalf. No one from the CPP has ever called you to find out how you’d like your contributions invested. Likewise for any DB plan member. Those retirement plans rely on portfolio managers to do that.
The core of any employee benefits plan is the pension. But with DB plans, rapid changes in longevity have pushed the majority of funds into an underfunded position, and employers are increasingly closing plans to new entrants in order to get the deficit under control and reduce the pressure on the corporate balance sheet.
The Canadian Federation of Independent Businesses (CFIB) say one of the main reasons their members don’t offer a retirement savings vehicle is the cost burden.
Bill C-25, the Pooled Registered Pension Plans Act, received Royal Assent yesterday, moving the legislation another step closer to becoming law. Federal tax legislation still needs to be passed, and regulations will soon be published to address provisions of the Act.