Pooled Registered Pension Plans: Building a Stronger Retirement Income System for Canadians

October 14, 2011

Toronto, Ontario - The Honourable Ted Menzies, Minister of State (Finance), spoke at the Investment Funds Institute of Canada’s Annual Industry Conference about how the introduction of Pooled Registered Pension Plans (PRPPs) will leverage Canada’s financial sector advantage to build a stronger retirement income system.

“Our government is committed to fostering an even stronger, more innovative and more competitive Canadian financial sector than ever before,” said Menzies. “Once implemented, PRPPs will provide Canadians with an innovative new, privately administered, low-cost and accessible pension vehicle to help meet their retirement objectives.”

PRPPs will differ from existing Registered Pension Plans in that they will allow individuals who currently may not participate in a pension plan, such as the self-employed and employees of companies that do not offer a pension plan, to benefit from a large-scale, low-cost pension plan.

“This development is especially important for millions of small business owners and their employees, who will now have access to a private pension plan for the very first time,” continued Menzies. “Since these plans will involve large pooled funds, plan members will also benefit from the lower investment management costs. In effect, they will be buying bulk.”

For more information on PRPPs and how to submit views on the framework please visit the Finance Canada website at: http://www.fin.gc.ca/act/prpp-prac/index-eng.asp.