Salmon Arm, British Columbia, July 16, 2012
The Honourable Ted Menzies, Minister of State (Finance), today spoke to the Salmon Arm Rotary Club about a new pension option for the millions of Canadians currently without access to a workplace pension plan. Pooled Registered Pension Plans (PRPPs) will be available once provinces pass their enabling legislation.
“Because PRPPs will involve pooling large funds, Canadians will benefit from lower management costs,” said Minister Menzies. “In effect, Canadians will be buying in bulk. This will leave more money in their pockets when they retire.”
PRPPs are the result of federal and provincial governments working together to help ensure the long-term strength of Canada’s retirement system. There was unanimous agreement at the December 2010 meeting of federal and provincial finance ministers to pursue a framework for PRPPs as an effective and appropriate way to help bridge existing gaps in the retirement system.
The recent passage by Parliament of the federal PRPP framework is an important step towards offering a new, low-cost pension option to employers, employees and the self-employed.
“Provinces can now easily and seamlessly use the federal legislation passed recently by Parliament as a model,” said Minister Menzies. “I urge British Columbia to adopt PRPP legislation as soon as possible for the benefit of those British Columbians currently without access to a workplace pension.”
