Fredericton, New Brunswick, February 20, 2013
Archived - Minister of State (Finance) Hails Pooled Registered Pension Plans as an Idea Whose Time Has Come
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The Honourable Ted Menzies, Minister of State (Finance), today highlighted the strong potential of the Harper Government’s Pooled Registered Pension Plan (PRPP) initiative to provide a low-cost private pension option for small and medium-sized businesses and their employees, while calling on provinces and territories to introduce legislation to make PRPPs a reality.
Speaking at the National Summit on Pension Reform, Minister Menzies stated, “Governments must always remain vigilant, and be prepared to take action to deliver positive outcomes in real, bottom-line terms.”
The Minister cited estimates showing that more than 60% of Canadians do not have access to a workplace pension plan, and noted that some Canadians may not be taking full advantage of personal retirement savings opportunities.
“To address this challenge, the Harper Government introduced the Pooled Registered Pension Plan: a large-scale, broad-based pension option available to employees—with or without a participating employer—as well as the self-employed,” said Minister Menzies.
PRPPs will allow plan members to benefit from lower management fees—in effect, Canadians will be buying in bulk. They are intended to be largely harmonized across provinces and territories, which will encourage lower administrative costs. Last June, Bill C-25, the Pooled Registered Pension Plans Act, received Royal Assent, and the final regulations came into force in December.
“With the federal framework now fully in force, it’s up to the provinces and territories to implement their own legislation,” Minister Menzies concluded. “New Brunswick has done great work on the public sector pensions, and now I would encourage them to ensure that the PRPP private sector option is available for those New Brunswickers that do not have the benefit of a workplace pension option.”
For further information, media may contact:
Office of the Minister of State (Finance)
Department of Finance