Sun Life Financial applauds federal PRPP legislation
TORONTO, June 29, 2012 /CNW/ - Sun Life Financial is pleased that Royal Assent has been given to the Pooled Registered Pension Plans Act (Bill C-25), which authorizes the introduction of Pooled Registered Pension Plans (PRPPs) at the federal level. This new legislation reflects the commitment made by federal, provincial and territorial governments in Canada to meaningfully address the concerns of millions of working Canadians who currently lack access to workplace retirement savings plans.
PRPPs - pooled, low-cost, professionally-managed plans that are transferable across employers - are an important step in making Canada's pension system more inclusive. They will allow small and medium-size employers (who do not currently provide retirement savings plans for their employees) to band together to form low-cost pension plans administered by a well-regulated provider, such as Sun Life.
"By pooling larger numbers of people under one plan, employers will be relieved of many of the responsibilities and costs associated with plan administration and employees will benefit from low-cost plans achieved by economies of scale," said Tom Reid, Senior Vice-President, Group Retirement Services, Sun Life Financial.
The small business community in Canada has also expressed support for PRPPs, Reid said. A survey of small and mid-sized enterprises commissioned by the Canadian Life and Health Insurance Association found that two-thirds of respondents were interested in contributing to PRPPs. At a time of growing skill shortages in Canada, these plans will help level the playing field between smaller employers and their larger peers in attracting and retaining skilled workers, who seek affordable retirement savings options in the workplace.
Now that the Pooled Registered Pension Plans Act has been given Royal Assent, Reid urged provinces to pass their own legislation - harmonized across Canada - to enable PRPPs.
"Quebec has demonstrated leadership by introducing legislation and other provinces are preparing to follow its lead," said Reid. "Sun Life hopes that all provinces will earnestly push to bring about much-needed PRPP-enabling reforms, to help ensure all working Canadians can obtain access to an affordable retirement savings plan in their workplace."
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of March 31, 2012, the Sun Life Financial group of companies had total assets under management of $494 billion. For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
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