TORONTO, June 29, 2012 /CNW/ - Sun Life Financial is pleased that Royal
Assent has been given to the Pooled Registered Pension Plans Act (Bill
C-25), which authorizes the introduction of Pooled Registered Pension
Plans (PRPPs) at the federal level. This new legislation reflects the
commitment made by federal, provincial and territorial governments in
Canada to meaningfully address the concerns of millions of working
Canadians who currently lack access to workplace retirement savings
PRPPs - pooled, low-cost, professionally-managed plans that are
transferable across employers - are an important step in making
Canada's pension system more inclusive. They will allow small and
medium-size employers (who do not currently provide retirement savings
plans for their employees) to band together to form low-cost pension
plans administered by a well-regulated provider, such as Sun Life.
"By pooling larger numbers of people under one plan, employers will be
relieved of many of the responsibilities and costs associated with plan
administration and employees will benefit from low-cost plans achieved
by economies of scale," said Tom Reid, Senior Vice-President, Group
Retirement Services, Sun Life Financial.
The small business community in Canada has also expressed support for
PRPPs, Reid said. A survey of small and mid-sized enterprises
commissioned by the Canadian Life and Health Insurance Association
found that two-thirds of respondents were interested in contributing to
PRPPs. At a time of growing skill shortages in Canada, these plans will
help level the playing field between smaller employers and their larger
peers in attracting and retaining skilled workers, who seek affordable
retirement savings options in the workplace.
Now that the Pooled Registered Pension Plans Act has been given Royal
Assent, Reid urged provinces to pass their own legislation - harmonized
across Canada - to enable PRPPs.
"Quebec has demonstrated leadership by introducing legislation and other
provinces are preparing to follow its lead," said Reid. "Sun Life hopes
that all provinces will earnestly push to bring about much-needed
PRPP-enabling reforms, to help ensure all working Canadians can obtain
access to an affordable retirement savings plan in their workplace."
About Sun Life Financial
Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth
accumulation products and services to individuals and corporate
customers. Chartered in 1865, Sun Life Financial and its partners today
have operations in key markets worldwide, including Canada, the United
States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan,
Indonesia, India, China and Bermuda. As of March 31, 2012, the Sun Life
Financial group of companies had total assets under management of $494
billion. For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under the ticker symbol SLF.
Note to Editors: All figures in Canadian dollars.
SOURCE Sun Life Financial Inc.
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