TORONTO, Nov. 17, 2011 /CNW/ -The Canadian Federation of Independent
Business (CFIB) welcomes today's federal government legislation on the
Pooled Registered Pension Plan (PRPP). "A new voluntary, low-cost and
administratively simple retirement savings mechanism will allow more
employers, employees, and the self-employed to participate in a pension
plan. CFIB is particularly pleased that firms will be given a choice
as to whether to register for or contribute to a PRPP," said Dan Kelly,
CFIB senior vice-president, legislative affairs.
CFIB is urging all provinces to design provincial legislation that
mirrors the federal government PRPP framework as opposed to advocating
tax increases, such as a mandatory CPP premium hike, when Canadians can
least afford it. CFIB data shows that even modest CPP increases will be
detrimental to the economy, employment and wages. "For every one
percentage point increase in CPP premiums beyond the current 9.9 per
cent rate, it would cost 220,000 person-years of employment and force
wages down roughly 2.5 per cent in the long run," Kelly said.
"We believe that, if properly implemented by provinces, PRPPs have the
potential to expand the retirement savings options for thousands of
Canadian small businesses and their employees," Kelly concluded.
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 108,000 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
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