The House of Commons passes Bill C-25, the Pooled Registered Pension Plan Act.
TORONTO, June 14, 2012 /CNW/ - The Association of Canadian Pension Management (ACPM) welcomes the recent passage by the House of Commons of the new Pooled Registered Pension Plan (PRPP) legislation.
Bill C-25, the Pooled Registered Pension Plan Act, provides a legal framework for the establishment and administration of a type of pension plan that is accessible to employees and self-employed persons. "We are encouraged to see that the federal government is taking steps to increase the number of retirement income options for Canadians," says ACPM President Chris Brown. "We recognize that there is significant work yet to be done to finalize the PRPP model. We will continue to promote provincial and territorial legislation and regulations by all levels of government that will ensure this new model will be attractive for administrators to offer, for employers to participate, and for employees saving towards their retirement."
One of the more beneficial aspects of the PRPP concept is the pooling of members' funds to achieve economies of scale, which can facilitate lower costs in relation to investment management and plan administration. The ACPM believes these types of innovative changes will lead to more individual retirement savings as well as retirement plan coverage for a greater number of Canadians.
Mr. Brown reiterated ACPM's long standing view that achieving better retirement income prospects for Canadians requires enhancing the ability for people to contribute to savings by means of the 'third pillar' of our retirement income system, that being personal savings and savings through the workplace. In that regard, ACPM recently released its Target Benefit Plan* paper which highlights yet another innovative savings option designed to provide employers and employees with another effective option for retirement savings. ACPM's Five Point Plan** contains other suggestions designed to help governments ensure a fair and reliable retirement income system for Canadians.
The Association of Canadian Pension Management (ACPM) is the informed voice of Canadian pension plan sponsors, administrators and their allied service providers. Our members represent over 400 pension plans consisting of more than three million plan members, with assets under management in excess of $330 billion.
(*) ACPM Target Benefit Plan Paper
(**) Improving Retirement Income Coverage in Canada - The ACPM Five Point Plan
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