Proposed pooled pension plans aimed at helping self-employed save
Posted November 17, 2011 11:45 am.
This article is more than 5 years old.
The federal government has tabled legislation to establish pooled registered pension plans to help Canadians save.
The savings vehicle is designed for the self-employed or those working for small firms that cannot afford pensions.
Ottawa and the provinces agreed to the initiative last December.
Minister of State for Finance Ted Menzies announced in Toronto that the PRPPs will give small firms and their workers access to a large privately administered pension plan for the first time.
He said about 60 per cent of Canadians don’t contribute to a private pension plan currently.
The PRPPs, however, are voluntary and allow workers to opt out, and do not require firms to contribute.
Critics, including some provincial governments, have argued that the new plan is inadequate to meet the need for greater retirement security and have asked the government to expand the Canada Pension Plan.
