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Legislation to address gap in private-sector pensions on deck: Menzies

Posted by on Nov 6, 2011 in Retirement | 0 comments

By Jason Fekete, Postmedia News November 4, 2011

OTTAWA — The federal government expects to introduce new legislation soon that will pave the way for its new Pooled Registered Pension Plans, a private-sector pension option to boost retirement savings.

The Conservatives plan to roll out the federal framework legislation before the end of the year, Ted Menzies, the minister of state for finance and government’s pension point man, announced Friday.

The Harper government hopes that introducing the legislation will allow interested provinces to voluntarily move forward in their spring budgets with plans to join the PRPPs possibly by the end of 2012 — although there’s no concrete timetable.

The Pooled Registered Pension Plan is targeted at small and medium-sized businesses, and the self-employed who don’t have a workplace pension option.

It is estimated six in 10 Canadian workers in the private sector have no private pension plan. Furthermore, only one-third of Canadians make contributions to registered retirement savings plans.

“PRPPs will address a growing gap in retirement savings, particularly amongst modest and middle-income earners,” Menzies said in a teleconference from Amsterdam, where he delivered a speech at the World Pension Summit.

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