Don’t delay implementation of pooled pensions
Toronto, December 14, 2012 - In advance of Monday’s meeting of federal, provincial and territorial finance ministers, the Canadian Federation of Independent Business (CFIB) delivered a clear message: it’s time to implement voluntary Pooled Registered Pension Plans (PRPPs) as the economy cannot afford a hike in Canada Pension Plan (CPP) premiums.
“While we know some provinces are holding out for a CPP expansion, this is blocking progress to add an important retirement savings option for employees and owners of small businesses,” said CFIB president and CEO Dan Kelly. “Entrepreneurs can’t afford an across the board CPP premium hike, but many are interested in offering a pooled pension in their workplace.”
CFIB recently sent a letter to each of the provincial finance ministers, urging them to introduce enabling legislation to take advantage of the federal Pooled Registered Pension Plan Act (PRPP Act). In some cases, finance ministers were asked to reconsider their decisions to make PRPPs conditional on a CPP rate increase.
“As nearly 80 per cent of small business owners do not have retirement plans in place for themselves or their employees, pooled pensions are just too important to be used as a political football,” Kelly said. CFIB believes PRPPs are part of the solution because they offer lower fees than current retirement tools, reduce the administrative burden and exempt employer contributions from payroll taxes.
“I’m very encouraged by a recent CFIB survey which found that a third of small business owners said they would consider offering a PRPP in their business,” added Kelly.
To arrange an interview with Dan Kelly please call Gisele Lumsden at 647-808-5769 or by email at firstname.lastname@example.org.
As Canada’s largest association of small- and medium-sized businesses, CFIB is Powered by Entrepreneurs™. Established in 1971, CFIB takes direction from more than 109,000 members in every sector nationwide, giving independent business a strong and influential voice at all levels of government and helping to grow the economy.