CFIB salutes British Columbia government for tabling PRPP legislation
Toronto, March 1, 2013 – The Canadian Federation of Independent Business (CFIB) is pleased by the announcement that legislation for Pooled Registered Pension Plans (PRPPs) is being introduced by the Government of British Columbia. If approved during the spring session, BC will be the first province to pass PRPP legislation after the Pooled Registered Pension Plans Act was given Royal Assent by the Canadian government last June.
“CFIB applauds the BC government for making it easier for British Columbians to save for their retirement,” said CFIB president Dan Kelly. “We urge all provincial governments to follow BC’s lead, as PRPPs will be an excellent addition to the retirement savings options for small business owners and their employees.”
Unlike company RRSPs, PRPPs are not subject to payroll taxes, and the administration fees are expected to be lower, so small firms will be able to set more money aside for employee retirement plans. CFIB plans to monitor financial institutions to ensure administration fees are significantly lower than current RRSPs.
Recent CFIB member data reveals that up to a third of small firms would consider offering a PRPP in their workplace to improve retirement savings for 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. We expect PRPPs to move the ball forward on both fronts,” added Kelly.
For more information or to arrange an interview with Dan Kelly, please contact Al Maggi at 416-222-8022 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.