(Newmarket-Aurora, November 25, 2011) - Newmarket-Aurora MP is pleased to inform residents that legislation has been introduced in Parliament on Pooled Registered Pension Plans (PRPP), 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,” said MP Brown. “PRPPs will offer a new, low-cost and accessible pension 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.

PRPPs 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.

“Canadians want their governments to act on their priorities and deliver results on a timely basis,” said MP Brown. “The PRPP is a prime example of what we can accomplish for Canadians when governments work together.”

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.

For more information on the Pooled Registered Pension Plan please visit http://www.fin.gc.ca/n11/11-119-eng.asp.