Manulife's eApplication sets up a plan in as little as 20 minutes
TSX/NYSE/PSE: MFC SEHK:945
WATERLOO, ON, Oct. 7, 2014 /CNW/ - Manulife is one of the first companies in Canada to receive approval for its federal Pooled Registered Pension Plan (PRPP) product from the Canada Revenue Agency (CRA) and the Office of the Superintendent of Financial Institutions (OSFI).
"Now Canadians who work for federally regulated organizations can take advantage of a workplace retirement savings plan that meets their needs," said Marianne Harrison, SEVP and General Manager, Canadian Division, at Manulife. "Given that PRPP is a new product in the marketplace, we knew that customers would want to be able to set-up a plan with a very easy eApplication, which is what we offer."
Manulife's innovative eApplication allows a plan to be set up in as little as 20 minutes with no paper forms to sign. Plan administration is also easy and worry-free for employers. Manulife tracks and administers plan additions and changes including employees joining or opting out, contribution rate changes and other account activities.
"Our Government believes Canadians deserve to live a secure and dignified retirement," says the Honourable Kevin Sorenson, Minister of State (Finance). "This is a major milestone in providing an attractive new retirement savings option for Canadians who do not have access to a workplace pension plan. It is also a significant achievement in the Government's ongoing efforts to strengthen Canada's retirement income system, with input from the public as well as industry stakeholders like Manulife. I would like to extend my sincerest thanks to all approved plan administrators for making federal PRPPs a reality. We encourage those provinces that haven't yet already implemented their respective PRPP frameworks to do so for the benefit of all Canadians."
In September 2013, Manulife was the first Canadian company to be issued a license to be a PRPP administrator by the Office of the Superintendent of Financial Institutions (OSFI).
For more information about the Manulife PRPP please visit www.prpp.com.
Now that the final registration of Manulife's federal PRPP product has been received from OSFI and the CRA, Manulife can finalize launch plans for the product to be offered to federally-regulated businesses across Canada, and to any business or self-employed individuals within the Yukon, Northwest Territories and Nunavut. Employees of businesses in the Yukon, Nunavut and the Northwest Territories are also eligible to participate in a PRPP, even if their employer has not yet implemented a formal plan.
Quebec recently became the first Canadian province to implement its own version of the PRPP, the Voluntary Retirement Savings Plan (VRSP), as well as legislation that makes offering a workplace savings plan mandatory for companies of a certain size over the next few years. Manulife's VRSP launched in July and is now available.
Saskatchewan and Alberta have also passed their own Pooled Registered Pension Plans (PRPP) Act and the province of British Columbia has tabled legislation for PRPP. The next step for these provinces will be to develop the regulations necessary for the legislation to be implemented. Once other provinces release their PRPP legislation, Manulife will offer plans to their residents, businesses and self-employed individuals.
"Benefits aren't just for big business. Offering employee benefits, such as a workplace savings plan, is one of the smartest ways to attract good people," said Marianne Harrison, SEVP and General Manager, Canadian Division, at Manulife. "When employees' financial needs are being met, they are more engaged, more productive and more committed long-term employees."
In December 2012, the Government of Canada finalized the Pooled Registered Pension Plans (PRPP) Act regulations, marking the creation of a brand-new workplace retirement savings plan – and an innovative opportunity for Canadians who currently do not have access to a retirement savings vehicle through their employer.
Manulife is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Clients look to Manulife for strong, reliable, trustworthy and forward-thinking solutions for their most significant financial decisions. Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients. We also provide asset management services to institutional customers. Funds under management by Manulife and its subsidiaries were approximately C$637 billion (US$597 billion) as at June 30, 2014. We operate as John Hancock in the U.S. and as Manulife in other parts of the world.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife can be found on the Internet at manulife.com
SOURCE: Manulife Financial Corporation
For further information: Media Contacts: Rebecca Freiburger, Manulife, 519-503-6604, [email protected]