Canadian banks are opposing a push by OMERS to manage PRPPs, reports Bloomberg News.

Allowing pension funds such as OMERS to manage the plans would “help to keep costs for participants lower, while keeping quality of service high,” the fund’s CEO Michael Nobrega said in a Nov. 18 letter to Minister of State for Finance Ted Menzies, which was obtained by Bloomberg News.

However, insurance companies and banks are arguing that public pension funds would have an unfair advantage administering the plans, since they don’t face the same regulations and costs.

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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V. Côté:

I think that PRPPs should be managed in the best interests of plan participants. I am happy with any PRPP administrator that can minimize the administration costs and optimize the rate of return on my money.

That private sector banks and insurance companies be disadvantaged by public pension fund administrators is simply irrelevant.

Friday, November 25 at 11:51 am | Reply

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