The federal government has introduced changes to Canada's pension landscape that will make saving for retirement easier for millions of Canadians, Cariboo-Prince George Conservative MP Dick Harris said Tuesday.
Legislation was introduced last week in parliament, implementing the federal portion of the Pooled Registered Pension Plan (PRPP) framework - billed as a way to offer new, low-cost and accessible pension option to help meet their goals.
"From Vanderhoof to Hagensborg, small businesses will be able to provide staff with an option for retirement savings," said Harris in a press release. "There will be savings on administrative costs so companies can 'incentivize' staff towards better retirement savings."
PRPPs are the outcome of several years of cooperation, research and consultations by Canada's finance ministers on ways to ensure the long-term strength of Canada's retirement income system.
"If you invest in a PRPP you will benefit from lower investment management costs associated with the large scale of these funds," said Harris. "Essentially, you will be buying in bulk. Which will leave you with more cash in your pocket when you retire."
PRPPs are defined-contribution plans, where employers and employees contribute known amounts but how much money they will end up with is determined in good measure by how well the investments perform. The Canada Pension Plan promises a specific monthly income upon retirement.
Skeena-Bulkley Valley MP Nathan Cullen dismissed PRPPs as too risky.
"The markets have stung us in the past and the idea of dumping all of our public and private pensions into the market is a dereliction of duty from the government," Cullen said. "I mean, we have a plan in place, it's worked well and the idea 50 years ago was radical that we would have public pension plans, but they've worked and they've been more steady.
"This is essentially privatization of a public idea."
