Business Community Urges Ontario to Move Ahead with PRPPs.

TORONTO, April 19, 2012 /CNW/ - The following is an open letter that has been sent to the Ontario Minister of Finance the Honourable Dwight Duncan urging the province to move ahead with the implementation of Pooled Registered Pension Plans.

April 19, 2012

Honourable Dwight Duncan
Minister of Finance
Government of Ontario
7 Queen's Park Crescent, 7th floor
Toronto, ON M7A 1Y7

Dear Minister:

We are writing to you, Minister, to encourage the Ontario government to proceed as quickly as possible with the establishment of Pooled Registered Pension Plans (PRPPs).

PRPPs are pooled, low-cost, professionally-managed and transferable pension plans that provide opportunities for the millions of Canadian workers, including the self-employed, who do not currently have access to any type of pension plan at the workplace.  In Ontario alone, it is estimated that over 1.2 million workers fall into this category.

We noted in your budget expressions of concern regarding PRPPs.  We believe these issues can be readily resolved and that time is of the essence in doing so. We do not support the concept that PRPP implementation should be tied to CPP enhancements. Given the time and processes involved in making any changes to CPP, this would only serve to delay an initiative that, in its own right, is viable, innovative and beneficial to Ontarians.  The longer governments take to establish a system of PRPPs, the less time those employees will have to use this vehicle to save for their retirement.

The Federal Government has introduced PRPP legislation that will be passed shortly.  Quebec announced a regime equivalent to PRPPs, called VRSPs, in their recent budget.  It is time for Ontario now to step up to ensure that Ontario residents, particularly those who work for small and medium sized businesses, can reap the benefits of a low-cost, accessible pension plan.

Yours truly,

Perrin Beatty President and CEO Canadian Chamber of Commerce

Catherine Swift President and CEO Canadian Federation of Independent Business

Frank Swedlove President Canadian Life and Health Insurance Association

 

 

Media Contacts:
Wendy Hope, Vice President, External Relations, CLHIA [phone]
Satinder Chera, Vice President, Ontario, CFIB [phone]
Emilie Potvin, Director, Public Affairs & Media Relations, Canadian Chamber of Commerce [phone], Ext.231