TORONTO, June 28, 2012 /CNW/ - The Canadian Federation of Independent
Business (CFIB) welcomed today's announcement that legislation for
Pooled Registered Pension Plans (PRPPs) has been given Royal Assent.
"PRPPs will be an excellent addition to the retirement savings options
for small business owners and their employees," said CFIB's new
president Dan Kelly. "Small firms tell us that the main reasons 80 per
cent of them do not have any form of company retirement plan for the
business owner or their employees are the costs and administrative
burden of offering a plan. If properly implemented by provinces and
financial institutions, we expect PRPPs to move the ball forward on
both fronts," Kelly added.
"Current pension plans are beyond the reach of most entrepreneurs and
company Registered Retirement Savings Plans (RRSPs) quickly become
unaffordable as employers must pay payroll taxes like Employment
Insurance, Canadian Pension Plan (CPP)/Quebec Pension Plan (QPP) and
workers' compensation premiums on top of any contributions to the
plan," said Kelly. "PRPPs, with no payroll taxes and lower
administration fees, should allow more firms to put more money aside
for retirement," Kelly added.
CFIB is calling on provinces to move quickly to implement the
legislation and to ensure that PRPPs remain entirely voluntary. "While
Quebec has already introduced legislation to move forward, CFIB is very
disappointed Ontario intends to block small firms from accessing this
improved retirement tool for workers," Kelly said. "CFIB will be
monitoring financial institutions to ensure administration fees are
significantly lower than current RRSPs."
"Brand new CFIB member data reveals that a full third of small firms
would consider offering a PRPP in their workplace," Kelly added. "For
our part, we at CFIB are currently examining ways to offer PRPPs to our
109,000 small business members across Canada."
CFIB is also urging Finance Ministers to shelve any plans to increase
CPP/QPP premiums at this time. New CFIB survey data shows that over a
third of small firms would be forced to freeze or reduce employee pay
and/or cut investment in their firm to accommodate a CPP/QPP hike.
Read CFIB's letter to the Finance Ministers: http://cfib.ca/a3923e
As Canada's largest association of small- and medium-sized businesses,
CFIB is Powered by Entrepreneurs™. Established in 1971, CFIB takes
direction from more than 109,000 members in every sector nationwide,
giving independent business a strong and influential voice at all
levels of government and helping to grow the economy.
SOURCE CANADIAN FEDERATION OF INDEPENDENT BUSINESS
For further information:
or to arrange an interview with Dan Kelly contact Meghan Carrington or Gisele Lumsden at 416 222-8022 or via firstname.lastname@example.org.