“They were not satisfied that they could just leave everything in the hands of the private sector,” said Susan Eng, vice president of advocacy at CARP.
Aarsson acknowledged concerns that financial institutions would have an inherent conflict of interest in providing of PRPPs on a for-profit basis, but he said these concerns are unwarranted, given the industry’s rigorous regulatory framework.
“Consumers would continue to have all of the protections of contract law, as well as the high standards of oversight and conduct required of and applicable to regulated financial institutions,” he said.
Still, Aarsson admitted that the creation of PRPPs wouldn’t alone improve the retirement savings system for Canadians. A “combination of other solutions” would also be necessary to address the at-risk cohorts of the Canadian population, he said.
Keywords: private, public, pension reform, retirement