Canadian Social Research Links

Pooled Registered Pension Plans

Updated July 3, 2012
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Related link:

- Go to the Pension Reforms Links page:
http://www.canadiansocialresearch.net/pensions.htm

NEW ON THIS PAGE

Submission by the Canadian Labour Congress to the House of Commons
Standing Committee on Finance Regarding Pooled Registered Pension Plans (PRPPs)
March 2, 2012
[Scroll down to the third red bar below for the executive summary and the complete text of the CLC submission.]

NEW ON THIS PAGE

The links on this page are organized in reverse chronological order, with the most recent addition at the top, for the most part...

Harper Government celebrates Royal Assent of Pooled Registered Pension Plans (PRPPs)
http://www.fin.gc.ca/n12/12-074-eng.asp
June 28, 2012
The Honourable Ted Menzies, Minister of State (Finance), announced that Bill C-25: the Pooled Registered Pension Plans Act will receive Royal Assent later today. The Minister joined representatives from the Canadian Federation of Independent Business (CFIB) and Jetstream Administration Inc. to celebrate this achievement. This legislation implements the federal framework for a new pension option for the millions of Canadians currently without access to a workplace pension plan.
(...)
PRPPs will be available across Canada once federal tax legislation is passed and the provinces pass their enabling legislation. Regulations will soon be published to address provisions of the Pooled Registered Pension Plans Act.

Related Document:

Helping Canadians Save for Their Retirement With Pooled Registered Pension Plans
http://www.fin.gc.ca/act/prpp-prac/index-eng.asp

Source:
Finance Canada

http://www.fin.gc.ca/fin-eng.asp

---

Full text of Bill C-25: the Pooled Registered Pension Plans Act
http://www.parl.gc.ca/HousePublications/Publication.aspx?Language=E&Mode=1&DocId=5670876

All published versions of Bill C-25
http://www.parl.gc.ca/LegisInfo/BillDetails.aspx?Mode=1&billId=5242186&Language=E#
- includes the First Reading of the Bill and the final version as passed by the House of Commons

Status of the Government House Bill
http://www.parl.gc.ca/LegisInfo/BillDetails.aspx?Mode=1&billId=5242186&Language=E

 

Passage of Pooled Registered Pension Plans Act a
Positive Step Towards Better Retirement Savings Options for Canadians
http://www.fin.gc.ca/n12/12-067-eng.asp
June 12, 2012
At the December 2010 meeting of Canada’s finance ministers, there was unanimous agreement to pursue a framework for Pooled Registered Pension Plans (PRPPs). PRPPs are an effective and appropriate way to help bridge the existing gaps in the retirement system and provide a viable retirement savings option for Canadians who currently do not have access to a workplace pension plan.The PRPP framework will be fully in place across Canada once Senate approval and provincial enabling legislation occurs. Once operational, PRPPs will offer a new low-cost, easily accessible, privately administered pension option. They will be available to employees—with or without a participating employer—as well as the self-employed

Related link:

Helping Canadians Save for Retirement
http://www.fin.gc.ca/act/prpp-prac/index-eng.asp
- incl. a brief description of PRPPS and links to 10 more online resources with more information about PRPPs

Source:
Finance Canada

http://www.fin.gc.ca/fin-eng.asp

 

Submission by the Canadian Labour Congress to the House of Commons
Standing Committee on Finance Regarding Pooled Registered Pension Plans (PRPPs)
http://goo.gl/BtRAq
March 2, 2012
Executive Summary
A phased-in, fully funded doubling of future Canada Pension Plan (CPP) retirement benefits remains the most efficient and cost effective means of addressing the problem of inadequate retirement savings in Canada. (...) By contrast, PRPPs are voluntary arrangements that employers may choose to make available to employees, and to which both employers and employees may choose to contribute. Vast challenges confront PRPPs in achieving anything close to the universal portability that the CPP already provides.

Complete submission (PDF - 296K, 22 pages)
http://www.canadianlabour.ca/sites/default/files/prpp-submission-2012-02-24-en.pdf

Source:
Canadian Labour Congress
http://canadianlabour.ca/
The Canadian Labour Congress (CLC) is the national voice of 3.2 million workers in Canada. The CLC brings together Canada’s national and international unions along with the provincial and territorial Federations of Labour and 130 district Labour Councils whose members work in virtually all sectors of the Canadian economy, in all occupations, and in all parts of Canada.

 

Minister Menzies Highlights Pooled Registered Pension Plans'
Strengths for Small and Medium-Sized Business

http://www.fin.gc.ca/n12/12-019-eng.asp
February 24, 2012
The Honourable Ted Menzies, Minister of State (Finance), today spoke to the Charlottetown Chamber of Commerce about how the introduction of Pooled Registered Pension Plans (PRPPs) will help small and medium-sized businesses compete for the skilled workers they need to expand and grow.
(...)
With PRPPs, participation in privately administered and well-regulated workplace pensions will be encouraged by automatic enrolment of employees. Automatic enrolment will encourage Canadians to begin a program of regular savings for their retirement.

Source:
Finance Canada
http://www.fin.gc.ca/fin-eng.asp

Whoa.
Did you get that zinger in the second sentence above?
"With PRPPs, participation ... will be encouraged by automatic enrolment of employees."
Automatic enrolment isn't encouragement --- it's coercion or, at best, a negative option.
But then, this *is* the Harper Government™ we're talking about here...

Related link:

Pooled Registered Pension Plans (PRPPs):
News Coverage, Opinion & Commentary

http://goo.gl/gcQKY
- links to 60+ related resources, including some negative critiques.
Source:
Ampersand Advisory Group
http://www.ampersandadvisory.com/
(Vancouver pension consulting firm)

 

Provincial and federal governments partner toward introduction of Pooled Registered Pension Plans
http://www.fin.gc.ca/n11/11-134-eng.asp
News Release
December 14, 2011
The Honourable Ted Menzies, Minister of State (Finance), today announced that the Government released for consultation a package of draft legislative proposals for changes to the Income Tax Act and the Income Tax Regulations to accommodate Pooled Registered Pension Plans (PRPPs). In December 2010, there was unanimous agreement among provinces, territories and the federal government to move forward with the framework for PRPPs. The rules announced today will set the stage for all provinces to introduce legislation to implement PRPPs.

Related Documents:

* Income Tax Legislative Proposals in Respect of Pooled Registered Pension Plans and Explanatory Notes
http://www.fin.gc.ca/drleg-apl/prpp-rpac1211-eng.asp
December 14, 2011

* Backgrounder: Key Measures Included in Income Tax Legislative Proposals in Respect of Pooled Registered Pension Plans
http://www.fin.gc.ca/n11/data/11-134_1-eng.asp
December 14, 2011

* News Release: Harper Government Introduces the Pooled Registered Pension Plans Act
http://www.fin.gc.ca/n11/11-119-eng.asp
November 17, 2011

Source:
Finance Canada
http://www.fin.gc.ca/fin-eng.asp

From the
Canadian Centre for Policy Alternatives (CCPA):

Pooled Registered Pension Plans not the answer to pension crisis: study
http://goo.gl/FYUgj
December 7, 2011
OTTAWA—The newly proposed Pooled Registered Pension Plan (PRPP) program will do nothing to solve Canada’s pension crisis, says a study released today by the Canadian Centre for Policy Alternatives (CCPA).
The study, by pension expert and CCPA research associate Monica Townson, provides an analysis of the PRPP program and argues that expanding the Canada Pension Plan (CPP) would provide better retirement pensions to virtually all Canadians

Complete report:

Pension Breakdown:
How The Finance Ministers Bungled Pension Reform
(PDF - 788K, 34 pages)
http://goo.gl/iwE3z
- includes a ten-page chapter entitled "Barriers to CPP Expansion"

Source:
Canadian Centre for Policy Alternatives
The Canadian Centre for Policy Alternatives is an independent, non-partisan research institute concerned with issues of social and economic justice. Founded in 1980, the CCPA is one of Canada’s leading progressive voices in public policy debates.


The Pooled Registered Pension Plan

From
Finance Canada:

Harper Government Introduces the Pooled Registered Pension Plans Act
November 17, 2011
Legislation was introduced today in Parliament, implementing the federal portion of the Pooled Registered Pension Plan (PRPP) framework. Since PRPPs are particularly applicable to small business, Minister Menzies delivered his remarks at a small radio station without a company pension plan. (...) PRPPs are the outcome of several years of cooperation, research and consultations by Canada’s finance ministers on the best ways to ensure the long-term strength of Canada’s retirement income system. (...) Provincial enabling legislation will need to be introduced for the framework to become fully operational.

Related Documents:

* Backgrounder: The Retirement Income Landscape in Canada
* Backgrounder: How Pooled Registered Pension Plans Will Address Gaps in Canada’s Retirement Income System
* Helping Canadians Save for their Retirement with Pooled Registered Pension Plans (includes links to seven more online related resources)
In December 2010, Canada’s Finance Ministers agreed on a framework for defined contribution Pooled Registered Pension Plans (PRPPs) to provide Canadians with a new, low-cost, efficiently managed, portable and accessible savings vehicle that will help them meet their retirement objectives.

Source:
Finance Canada

---

Related links:

Ottawa launches pooled pension plan
By Michael Lewis
November 18, 2011
The Harper government has tabled its framework for a pooled pension plan that it says will help fill the gap for the nearly two-thirds of Canadian workers without the security of a company sponsored pension. (...) But Liberal finance critic Scott Brison called the PRPP a half measure that will give maximum benefit to the banks and insurance companies who will earn transaction fees for administering the plan. He also called it a poor substitute for expansion of the defined benefit Canada Pension Plan that provides secure benefits for all Canadians. (...) Canadian Labour Congress President Ken Georgetti called PRPPs privately administered workplace pension plans that resemble group RRSPs. As such, he said they will fail to secure predictable benefits in retirement indexed against inflation, won’t match the CPP’s low cost and will lack the CPP’s survivor and disability benefits and universal portability.

Source:
Moneyville.ca
[ Toronto Star ]

Harper Conservatives failing to address retirement income crisis
November 17, 2011
Legislation creating pooled registered pension plans is an ineffective and woefully inadequate way to address Canada’s retirement income security crisis. Canada’s largest union is calling on the federal government to quit stalling with half-measures and to start acting with the provinces on urgently needed reforms to public pensions.
Source:
Canadian Union of Public Employees (CUPE)

Ensuring a Strong Retirement System, Support for Provinces
and Territories While Moving Towards Budget Balance

December 20, 2010
The Honourable Jim Flaherty, Minister of Finance, today released the following statement at the close of his meeting with provincial and territorial Finance Ministers and ministers responsible for pensions: “We had a very good meeting. I’d like to thank my provincial and territorial counterparts for their contribution to what was a candid, open and productive discussion.

“I’m particularly pleased to announce that we reached agreement on a framework for the introduction of a new kind of pension plan, called the Pooled Registered Pension Plan, or PRPP. “This new private-sector retirement savings vehicle will improve the range of retirement savings options available to Canadians by providing a low-cost retirement savings opportunity for employees—with or without a participating employer—and the self-employed."
Source:
Canada News Centre

Related links:

Framework for Pooled Registered Pension Plans
December 2010
This backgrounder sets out a framework for defined contribution PRPPs across Canada that will improve the range of retirement saving options to Canadians
Source:
Finance Canada

Saskatchewan. Pension Plan may be used to develop changes nationally
By Bruce Johnstone
December 27, 2010
The province that introduced medicare and public auto insurance to Canada -- could soon be leading the way in pension reform as well. The Saskatchewan Pension Plan, which has been around since 1986, may well be the model for the pooled pension plans that the country's finance ministers proposed last week in Kananaskis, Alta. The federal and provincial finance ministers agreed to introduce legislation to allow the creation of pooled registered pension plans (PRPPs), targeted to employees of small-and medium-sized businesses. The PRPPs would be 'low-cost' private pension plans that would be available to employees without a company pension plan or even an employer, in the case of self-employed people. Employee participation would be mandatory, unless the employee opted out of the plan. The closest thing we have to a PRPP in Canada today is the Saskatchewan Pension Plan (SPP), a voluntary pension plan to which employees, self-employed individuals and/or their spouses can contribute up to $2,500 annually.
Source:
Regina Leader-Post

From the
Canadian Labour Congress:

Georgetti urges quick action on enhancing Canada Pension Plan
- Says Canadians losing opportunities to save for retirement

December 20. 2010
OTTAWA – Finance Ministers should move as quickly as possible to provide enhancements to the Canada and Quebec Pension Plans, says Ken Georgetti, president of the Canadian Labour Congress. “We have a looming pensions crisis and we can’t wait for years to fix this problem,” Georgetti says. “An improved CPP is easily the best way to guarantee retirement security for Canadians.”
Georgetti was commenting on the Finance Ministers’ meeting in Kananaskis, Alberta on December 19-20. At least six of the provinces prefer an enhanced CPP, a proposal that federal Finance Minister Jim Flaherty supported until very recently. But he now wants provinces and territories to support a privately administered option called Pooled Registered Pension Plans (PRPPs). The ministers have agreed to do more work on both proposals and to meet again in June. “Mr. Flaherty’s idea is, at best, a poor alternative to CPP expansion,” Georgetti says.

Q's and A's re. proposed Pooled Registered Pension Plans
(...) PRPPs are a better option than an individual RRSP and other alternatives, with potential lower cost (not demonstrated or legislated) and fiduciary role. But it won’t guarantee you a decent retirement income and is greatly inferior to the option of expanding the benefits under the Canada Pension Plan.
Source:
Canadian Labour Congress

From the
Progressive Economics Forum:

Flaherty’s Inferior Pension Plan (FLIPP)
By Andrew Jackson
December 20, 2010
. Basically they are like group RRSPs, but sponsored by a financial institution with a fiduciary responsibility as opposed to an employer. They may be somewhat lower cost than individual RRSPs, as with current group RRSPs. However, there will be a lot of such plans, with different investment options, so large economies of scale will not be reached. Unlike the CPP, there is no mandatory employer contribution; no defined benefit based on career average earnings; no inflation protection,; and no assurance of full portability.  Costs, including financial institution profits, will lower returns considerably compared to the CPP alternative. Would such plans  gain a lot of members? Enrollment of employees could be mandatory, at the discretion of a province, but almost certainly with an opt out provision.  Some individual RRSP accounts could be transferred to new, larger pools. At best, a very poor alternative to CPP expansion.

Source:
Progressive Economics Forum (PEF)
Economic policy-making and economics instruction in Canada have both increasingly come to reflect a conservative, free-market perspective. There is an urgent need to promote an alternative, progressive economics community in Canada. Over 125 progressive economists—working in universities, the labour movement, and activist research organizations—have joined forces to make our collective, critical perspective heard. We have formed the Progressive Economics Forum.
The general goal of PEF is to promote the development of a progressive economics community in Canada.

Pooled pension plans become the latest retirement planning option
http://www.cbc.ca/news/business/taxseason/story/2011/11/17/f-prpp-details.html
November 17, 2012

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