Recently our government introduced legislation in Parliament on Pooled Registered Pension Plans (PRPPs), making saving for retirement easier for millions of Canadians and ensuring the ongoing strength of Canada’s retirement income system.
Canadians work hard for their retirement, but surprisingly over 60% do not have a workplace pension plan. Pooled Registered Pension Plans will offer a new, low-cost and accessible option to help meet their retirement goals.
PRPPs are a new kind of defined contribution pension plan that will be available to employers, employees and the self-employed. Design features of the PRPP will remove many of the traditional barriers that might have kept some employers in the past from offering pension plans to their employees.
They are particularly applicable to small business. Individuals who currently do not participate in a pension plan, such as the self-employed and employees of companies that do not offer a pension plan can make use of this new program. Participants will benefit from lower investment management costs associated with the large scale of these funds.
PRPPs are the result of several years of cooperation. In the context of Canada’s aging population and the global financial crisis highlighting the issue of retirement income security, a joint federal-provincial working group was established in May 2009 to undertake an in-depth examination of retirement income adequacy in Canada.
The working group concluded that overall the Canadian retirement income system is performing well and providing Canadians with an adequate standard of living upon retirement; however, some Canadian households, especially modest- and middle-income households, are at risk of not saving enough for retirement. Ministers tasked senior officials to work collaboratively to analyze the wide range of ideas put forward to effectively address the issues identified in the research report. This exhaustive research led Finance Ministers in December 2010 to agree to pursue a framework for Pooled Registered Pension Plans. Provincial enabling legislation will need to be introduced for the framework to become fully operational. The Government of Canada is confident that the provincial side of the framework will soon be in place.
Pre-Budget Consultations Begin
As the New Year approaches our attention also turns towards Budget 2012. This week the Honourable Jim Flaherty, Minister of Finance, launched his Pre-Budget Consultations and once again I will be hosting a local meeting so that residents in Newmarket and Aurora have an opportunity to participate and have their say. While our focus remains on jobs and economic growth, reducing the deficit and returning to balance in the medium term, it is important that I know what your priorities are, so that I may best represent your interests in Ottawa. My pre-budget meeting takes place in the third week of January and details will be announced soon. I have also posted an online pre-budget survey on my website at www.loisbrown.ca and invite you to send in your comments that way as well. I will be personally submitting to Minister Flaherty all input received, as well as posting a summary of that input on my website at the conclusion of the consultations.
Lois’ Annual Holiday Open House
Finally as we enter the Christmas season, that most joyous of seasons, I would like to take to take this opportunity to invite you to my Annual Holiday Open House taking place this Saturday, December 10th, from noon to 4 p.m. at the constituency office. It would be wonderful to see you and I hope you will consider dropping by to celebrate the festive season and enjoy the camaraderie of fellow friends and neighbours. This time of year truly gives us an opportunity to reflect on how fortunate we are and to reach out to those around us in need of a helping hand. My constituency office is located at 16600 Bayview Avenue, Suite 206 in Newmarket just one set of lights south of Mulock on the west side. Non-perishable items for the food bank are being accepted at my office.
As always I welcome your suggestions and comments. I can be reached by phone at 905-953-7515 or by email at Lois.Brown@parl.gc.ca.
