Toronto, January 27, 2012
Archived - Minister Menzies Speaks to C.D. Howe Institute on Boosting Retirement Savings Through Pooled Registered Pension Plans
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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:
- By pooling pension savings they 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 enrolment and management.
“Participation in privately administered and well-regulated workplace pensions will be encouraged by automatic enrolment of employees into a PRPP, where an employer offers one,” said Minister Menzies. “By making participation automatic, Canadians will save more and our retirement income system will be healthier as a result.”
More information on PRPPs is available on the Department of Finance website.
For further information, media may contact:
Office of the Minister of State (Finance)
Department of Finance
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