In Quebec, almost 70 per cent of those without workplace plans are
interested in offering the new retirement savings option to employees
MONTREAL, Jan. 17, 2012 /CNW/ - Small and medium business enterprise
(SMEs) owners and executives are enthusiastic to adopt the new Pooled
Registered Pension Plans (PRPPs) - known in Quebec as Voluntary
Retirement Savings Plans (RVERs) - according to a recent poll conducted
by Leger Marketing on behalf of the Canadian Life and Health Insurance
The poll revealed 69 per cent of SME employers in Quebec who do not
currently offer a retirement plan of any kind are interested in
providing RVERs. Over 800 companies across Canada were surveyed in
"Small and medium sized business executives are ready to embrace RVERs
as they look for new ways to keep employees and attract new people,"
said Yves Millette, Senior Vice President, Quebec Affairs, Canadian
Life and Health Insurance Association. "We are on the cusp of making a
fundamental shift in the pension landscape."
Based on available Statistics Canada and industry data, more than 50 per
cent of private-sector workers do not have access to a workplace
retirement plan. RVERs will give them the opportunity to participate,
and at a low cost usually only realized by very large pension plans.
The poll also showed that a large majority (74 per cent) of SMEs in
Quebec agree that all employers should be required to offer some form
of retirement plan to employees, especially given that RVERs will be a
low-cost alternative. Support for making it a requirement was strong in
every region in Canada.
"These savvy employers know a good thing when they see it," added
Millette. "Universal access will assure that all Canadians workers have
an opportunity to save at the workplace."
Even though it is not mandatory for employers to contribute to the RVERs
in the current legislation, 60 per cent of Quebec SME executives
interested in providing RVERs to their employees said they will "look
at ways their business could contribute to the plan over and above what
the employee puts into it".
Nearly two-thirds (62 per cent) of survey participants in Quebec believe
that their employees will be interested in participating in RVERs.
In November, the Federal Government tabled legislation introducing
PRPPs. In Quebec, the Minister of Finance has already indicated that
the provincial government will introduce similar legislation over
coming months. PRPPs will provide small business owners and their
employees with access to large-scale, low-cost, professionally
administered pension plans.
The Canadian life and health insurance industry administers more than 70
per cent of pensions plans for Canada's small and medium-sized
businesses and the vast majority of group RRSPs. CLHIA members manage
more than 45,000 employer pension, group RRSP, and other savings
programs serving more than 5.1 million Canadians with almost
$140 billion in assets.
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 more than 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
About the Survey
A national online survey of 803 executives (senior manager level and up)
from small and medium-size enterprises (SME's) was completed from
December 6, 2011 to December 15, 2011. A probability sample of the same
size would yield a margin of error of +/- 3.46% 19 times out of 20.
SOURCE Canadian Life and Health Insurance Association Inc.
For further information:
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