Federal, provincial and territorial governments have all committed to the introduction of Pooled Registered Pension Plans (PRPPs), to fill a gap for the more than 60 per cent of Canadian workers who don't have access to such workplace retirement plans. PRPPs are pooled, low-cost, professionally-managed pension plans.
"Under PRPPs, all working Canadians can benefit," says Frank Swedlove, President of the Canadian Life and Health Insurance Association (CLHIA). "The big winners are small and medium sized businesses that currently can't afford to offer pension plans, as well as those private sector workers and the self-employed who don't have access to such plans," he added. A survey that CLHIA conducted found that 7 in 10 small and mid-sized business executives are interested in offering a PRPP.
The federal government and six provinces have passed PRPP (or, in the case of Quebec, VRSP) legislation. Quebec has gone one step further and requires that all Quebec workers in workplaces with five or more employees, along with the self-employed, have access to a workplace retirement savings plan.
The CLHIA urges other provinces to move forward on a timely basis, to ensure that millions of Canadians can benefit.