Charlottetown, February 24, 2012
Archived - Minister Menzies Highlights Pooled Registered Pension Plans’ Strengths for Small and Medium-Sized Business
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The Honourable Ted Menzies, Minister of State (Finance), today spoke to the Charlottetown Chamber of Commerce about how the introduction of Pooled Registered Pension Plans (PRPPs) will help small and medium-sized businesses compete for the skilled workers they need to expand and grow.
“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,” said Minister Menzies. “This is especially important for small business and its employees who will now have access to a private pension plan for the very first time.”
With PRPPs, participation in privately administered and well-regulated workplace pensions will be encouraged by automatic enrolment of employees. Automatic enrolment will encourage Canadians to begin a program of regular savings for their retirement.
Other PRPP advantages include:
- By pooling pension savings they will offer greater purchasing power, achieving lower prices 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.
- The organization of these plans will also be straightforward to allow for simple enrolment and management.
More information on PRPPs is available through the Finance Canada website.
For further information, media may contact:
Office of the Minister of State (Finance)
Department of Finance
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