TORONTO, May 1, 2014 /CNW/ - The Canadian life and health insurance
industry welcomes a number of significant initiatives announced in
The industry is particularly pleased with the government's commitment to
establish Pooled Registered Pension Plans (PRPPs) in the fall.
"Systems for these plans are already in place and PRPPs will be able to
hit the ground running, giving Ontario workers the immediate
opportunity to start saving for retirement at the workplace," says
Frank Swedlove, President of the Canadian Life and Health Insurance
Association (CLHIA). "Canada already has a strong retirement income
system. The addition of PRPPs will provide an effective, targeted
solution for those without workplace plans, especially those in small
and medium-sized businesses" he added.
The industry is also pleased with the government's commitment to protect
disabled workers in corporate insolvencies. "Recipients of long-term
disability benefits are particularly vulnerable if the company has
self-financed long-term disability coverage and finds itself in
financial difficulty," says Mr. Swedlove. "We commend Ontario for
taking the step to ensure that this can no longer happen."
In terms of the government's announcement on infrastructure development,
the industry believes that the use of a private-public partnership
model will continue to benefit the people of Ontario. "We look forward
to working with the Ontario government on how best to develop
infrastructure for Ontarians," noted Mr. Swedlove.
Regarding the announcement of an Ontario Retirement Pension Plan, the
industry believes a more effective solution to meet the needs of those
without workplace plans, is through the introduction of PRPPs. It is a
targeted solution that can be implemented in an immediate and
About the CLHIA
The Canadian life and health insurance industry provides a wide range of
financial security products, including life insurance, annuities and
supplementary health insurance, to almost 27 million Canadians. The
industry administers more than two-thirds of pension plans for Canada's
small and medium-sized businesses and the vast majority of group RRSPs.
Established in 1894, the CLHIA is a voluntary association whose member
companies account for 99 per cent of Canada's life and health insurance
SOURCE: Canadian Life and Health Insurance Association Inc.
For further information:
Wendy Hope, Vice President, External Relations (613) 230-0031/(613) 986-1853 - cell