A message to Provincial & Federal Finance Ministers: Do not delay PRPP implementation
CFIB welcomed an announcement that legislation for Pooled Registered Pension Plans (PRPPs) was given Royal Assent in June, 2012. Brand new Recent CFIB member data reveals that a third of small firms would consider offering a PRPP in their workplace.
PRPPs will be an excellent addition to the retirement savings options for small business owners and their employees. Small firms tell us that the main reasons 80% of them do not have any form of company retirement plan for the business owner or their employees are the costs and administrative burden of offering a plan. If properly implemented by provinces and financial institutions, we expect PRPPs to move the ball forward on both fronts.
PRPPs, with no payroll taxes and lower administration fees, should allow more firms to put more money aside for retirement. As the provincial and federal Finance Ministers meet on December 16-17, 2012, We are calling on the provinces to move quickly to implement the legislation and to ensure that PRPPs remain entirely voluntary. CFIB will be monitoring financial institutions to ensure administration fees are significantly lower than current RRSPs.
We also urge all Finance Ministers to shelve any plans to increase CPP/QPP premiums at this time. New CFIB survey data shows that over a third of small firms would be forced to freeze or reduce employee pay and/or cut investment in their firm to accommodate a CPP/QPP hike.