Almost 70 per cent of those without workplace plans are interested in
offering the new retirement savings option to employees
TORONTO, Jan. 17, 2012 /CNW/ - Small and medium enterprise (SME) owners
and executives are enthusiastic to adopt the new Pooled Registered
Pension Plans (PRPPs), according to a recent poll conducted by Leger
Marketing on behalf of the Canadian Life and Health Insurance
The poll revealed 68 per cent of SME employers who do not currently
offer a retirement plan of any kind are interested in providing PRPPs.
Over 800 companies were surveyed in early December.
"Small and medium sized business executives are ready to embrace PRPPs
as they look for new ways to keep employees and attract new people,"
said Frank Swedlove, President, Canadian Life and Health Insurance
Association. "We are on the cusp of making a fundamental shift in the
Based on available Statistics Canada and industry data, more than 50 per
cent of private-sector workers do not have access to a workplace
retirement plan. PRPPs will give them the opportunity to participate,
and at a low cost usually only realized by very large pension plans.
The poll also showed that a large majority (71 per cent) of all SMEs
agree that employers should be required to offer some form of
retirement plan to employees, especially given that PRPPs will be a
low-cost alternative. Support for making it a requirement was strong in
every region in Canada. It was highest among those who already have a
plan (79 per cent), and still very strong (66 per cent) among those who
do not have a plan.
"These savvy employers know a good thing when they see it," added
Swedlove. "Universal access will assure that all Canadian workers have
an opportunity to save at the workplace."
Even though it is not mandatory for employers to contribute to the PRPPs
in the current legislation, 73 per cent of SME executives interested in
providing PRPPs to their employees said they will "look at ways their
business could contribute to the plan over and above what the employee
puts into it".
Two-thirds of survey participants believe that their employees will be
interested in participating in PRPPs.
In November, the Federal Government tabled legislation introducing
PRPPs. Provincial governments are expected to introduce similar
legislation over coming months. PRPPs will provide small business
owners and their employees with access to large-scale, low-cost,
professionally administered pension plans.
The Canadian life and health insurance industry administers more than 70
per cent of pensions plans for Canada's small and medium-sized
businesses and the vast majority of group RRSPs. CLHIA members manage
more than 45,000 employer pension, group RRSP, and other savings
programs serving more than 5.1 million Canadians with almost
$140 billion in assets.
The Canadian life and health insurance industry provides a wide range of
financial security products, including life insurance, annuities
(including RRSPs, RRIFs and pensions) and supplementary health
insurance, to more than 26 million Canadians and their dependents.
Established in 1894, the CLHIA is a voluntary association whose member
companies account for 99 per cent of Canada's life and health insurance
About the Survey
A national online survey of 803 executives (senior manager level and up)
from small and medium-size enterprises (SME's) was completed from
December 6, 2011 to December 15, 2011. A probability sample of the same
size would yield a margin of error of +/- 3.46% 19 times out of 20.
SOURCE Canadian Life and Health Insurance Association Inc.
For further information:
Media enquiries contact: Wendy Hope, Vice President, External Relations (613) 230-0031 or (613) 986-1853