Small business supports new voluntary, low-cost pension plan; asks provinces to abandon calls for higher CPP
Toronto, November 17, 2011 - The Canadian Federation of Independent Business (CFIB) welcomes today's federal government legislation on the Pooled Registered Pension Plan (PRPP). "A new voluntary, low-cost and administratively simple retirement savings mechanism will allow more employers, employees, and the self-employed to participate in a pension plan. CFIB is particularly pleased that firms will be given a choice as to whether to register for or contribute to a PRPP," said Dan Kelly, CFIB senior vice-president, legislative affairs.
CFIB is urging all provinces to design provincial legislation that mirrors the federal government PRPP framework as opposed to advocating tax increases, such as a mandatory CPP premium hike, when Canadians can least afford it. CFIB data shows that even modest CPP increases will be detrimental to the economy, employment and wages. "For every one percentage point increase in CPP premiums beyond the current 9.9 per cent rate, it would cost 220,000 person-years of employment and force wages down roughly 2.5 per cent in the long run," Kelly said.
"We believe that, if properly implemented by provinces, PRPPs have the potential to expand the retirement savings options for thousands of Canadian small businesses and their employees," Kelly concluded.
For more information or to arrange an interview, contact Gisele Lumsden or Meghan Carrington at 416 222-8022 or via email at public.affairs@cfib.ca
As Canada's largest association of small- and medium-sized businesses, CFIB is Powered by EntrepreneursTM. Established in 1971, CFIB takes direction from more than 108,000 members in every sector nationwide, giving independent business a strong and influential voice at all levels of government and helping to grow the economy.
