MONTREAL, Dec. 14, 2012 /CNW Telbec/ - Standard Life has called on
provincial and territorial finance ministers to support Pooled
Registered Pension Plans (PRPPs) that will help Canadians save for a
In advance of the upcoming meeting of federal, provincial and
territorial finance ministers in Ottawa on December 16 and 17, Standard
Life has sent individual letters encouraging each finance minister to
support the federal government's lead on PRPPs and adopt enabling
legislation that will allow workers covered under provincial
jurisdictions to participate in the program.
"The Government of Canada has done the right thing by adopting Bill
C-25, the Pooled Registered Pension Plans Act," said Charles Guay, President and Chief Executive Officer. "Now that
the federal legislation has passed, it is time for provinces to take
leadership on this important initiative and adopt the PRPP framework
that was agreed to in 2010."
Pooled Registered Pension Plans provide a workplace retirement plan for
individuals who would not otherwise have one - including self-employed
Canadians. By pooling their savings, employees are able to achieve cost
savings similar to those available to large pension plans. Pooled
Registered Pension Plans also help employees save through payroll
deductions. Employers can choose to contribute to PRPPs on behalf of
their workers, but there is no requirement to do so.
Pooled Registered Pension Plans have been identified by the federal
government as one way to avoid a potential crisis among retirees in
Canada. It is estimated that more than half of working Canadians today
do not have a workplace retirement plan, and personal savings are at
historic lows. The proposed PRPPs can help people save within the
workplace and provide a reliable income stream in retirement.
"Using PRPPs to encourage savings by Canadians who don't currently have
access to a pension plan just makes good sense," said Mr. Guay.
In order to ensure the plans will be as effective as possible and to
maximize the greatest amount of participation by Canadians, Standard
Life also recommended to ministers that legislation be designed to
include such measures as mandatory sponsorship and automatic enrollment, and that it be harmonized among the provinces.
Incorporating these simple but effective measures will help Canadians
save for a secure future and will allow PRPPs to achieve their
objective to provide Canadians with a new accessible, simple and
low-cost retirement option.
About Standard Life
Standard Life plc is a leading long-term savings and investment company
headquartered in Edinburgh, Scotland. Standard Life has around six
million customers worldwide and operates in the United Kingdom, Europe,
North America and Asia, and globally with Standard Life Investments
In Canada, Standard Life has been doing business for almost 180 years.
It operates under Standard Life Financial Inc., which wholly owns The
Standard Life Assurance Company of Canada and Standard Life Mutual
Funds Ltd. It is Standard Life plc's largest operation outside the UK
with about 2,000 employees. It provides long-term savings, investment
and insurance solutions to more than 1.4 million Canadians, including
group retirement and insurance plan members.
As of September 30, 2012, Standard Life plc had C$337 billion in assets
under administration, including C$44 billion in Canada through Standard
SOURCE: STANDARD LIFE
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