PRPPs to provide more options, less costs: Minister
The federal government has launched a countrywide campaign to encourage the adoption of pooled registered pension plans (PRPPs).
“PRPPs will play a critical role in improving the range of retirement savings options available to Canadians by providing a low-cost retirement savings opportunity,” said Minister of State (Finance) Ted 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.”
The first stop on the tour was Swiss Master Chocolatier in Toronto July 18 to speak with the business owner and her employees about how PRPPs will strengthen Canada’s retirement system, said the government.
The minister is meeting with provincial and territorial finance ministers across the country over the summer in advance of the next finance ministers meeting.
During this time, government officials are continuing to work with key stakeholders to ensure the framework for these new plans will meet the needs of employees, employers and those financial institutions that may offer PRPPs once they are implemented, said Menzies.
At their meeting in December 2010, Canada’s finance ministers agreed on a framework for the introduction of PRPPs as part of their collaborative efforts to ensure the ongoing strength of Canada’s retirement income system.
“Canada’s finance ministers opted to prioritize the PRPP framework because it was considered the most effective and targeted way to help millions of Canadians who have not previously had access to a company pension plan,” said Menzies.
