November 18, 2011 – Yesterday, Ted Menzies, Minister of State (Finance) announced that the Government of Canada is moving forward with Pooled Registered Pension Plans (PRPPs). Legislation was introduced yesterday in Parliament, implementing the federal portion of the Pooled Registered Pension Plan (PRPP) framework. As currently proposed, PRPPs will offer private sector managed defined contribution plans.
CARP has consistently called on the government to include CPP enhancement and greater safeguards, such as fee caps, on PRPPs to offer real retirement savings options to more than eight million Canadians who don’t currently have occupational plans. The recent changes in the political landscape after the provincial elections and leadership contests provide the opportunity to re-visit getting a federal-provincial-territorial consensus, especially on CPP enhancement.
The political landscape has changed dramatically since the PRPPS were first announced and the CPP-enhancement portion sidelined. Minister Menzies should be congratulated for moving on plans for a new retirement savings vehicle but he should revisit getting a consensus on the modest CPP-enhancement along with better safeguards on PRPPs. We should not be satisfied with the least of the options.
CARP will continue to advocate for more safeguards in PRPPs and for an enhancement of the CPP.
- CARP’s PRPP Press Release
- Government’s Official Press Release
- Backgrounder: The Retirement Income Landscape in Canada
- Backgrounder: How Pooled Registered Pension Plans Will Address Gaps in Canada’s Retirement Income System