TORONTO, June 28, 2012 /CNW/ - The Canadian life and health insurance industry congratulates the
federal government on the passage of Bill C-25 which puts in place the
legislative framework to implement Pooled Registered Pension Plans
(PRPPs). "PRPPs are the great equalizer. Pensions will no longer be the
sole privilege of those who work in the public sector or for large
firms. Under PRPPs, all Canadians can benefit," says Frank Swedlove,
President of the Canadian Life and Health Insurance Association
(CLHIA). "The big winners are small and medium sized businesses that
currently can't afford to offer pension plans, as well as those private
sector workers and the self-employed who don't have access to a pension
plan," he added. PRPPs are pooled, low-cost, professionally-managed
pension plans. A survey that CLHIA conducted late last year found that
7 in 10 SME executives are interested in offering a PRPP.
All provinces have agreed to implement PRPPs but, so far, only Quebec
has moved ahead with legislation to implement its version of PRPPs,
called voluntary retirement savings plans. The Quebec legislation would
ensure that all Quebec workers in workplaces with five or more
employees, along with the self-employed, have access to a workplace
retirement savings plan by 2015.
"We urge all provinces to move quickly and decisively to introduce PRPP
legislation to give their workers every opportunity to save for
retirement," added Swedlove.
Canada has one of the best retirement systems in the world according to
the Melbourne-Mercer Global Pension Index. "The addition of PRPPs can
only enhance Canada's stature on the global stage," noted Swedlove.
"Canadians will have better access and more choices as they plan for
About the CLHIA
The Canadian life and health insurance industry provides a wide range of
financial security products, including life insurance, annuities
(including RRSPs, RRIFs and pensions) and supplementary health
insurance, to about 26 million Canadians and their dependents.
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.
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