The Canadian Life and Health Insurance Association, the Canadian Chamber of Commerce and the Canadian Federation of Independent Business are calling upon the government of Ontario to proceed as quickly as possible with the establishment of pooled registered pension plans (PRPPs).
PRPPs are pooled, low-cost, professionally-managed and transferable pension plans that provide opportunities for the millions of Canadian workers, including the self-employed, who do not currently have access to any type of pension plan at the workplace. In Ontario alone, it is estimated that over 1.2 million workers fall into this category, the associations said in a letter to Minister of Finance Dwight Duncan.
The letter addresses the fact the provincial budget expressed concern regarding PRPPs including employers who currently offer defined contribution (DC) plans moving to PRPPs to reduce their costs, as well as the concept that PRPP implementation should be tied to CPP (Canada Pension Plan) enhancement — which the associations do not support.
“Given the time and processes involved in making any changes to CPP, this would only serve to delay an initiative that, in its own right, is viable, innovative and beneficial to Ontarians,” the letter said.
The letter urges the Ontairo government to become aligned with the federal governemtn, which has introduced PRPP legislation., and the Quebec government which has announced a similar regime known as voluntary retirement savings plans (VRSPs).
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