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Provinces slow on PRPP uptake

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John Staric:

When and maybe we should be saying IF the provinces pass PRPPs then we have the next stumbling block; i.e. will providers provide PRPPs when they must know that many sponsors will wind up their defined contribution plans with their provider to open a PRPP. Essentially, the Provider will be doing more work for the Sponsor with more responsibility and all the while charge less. Doesn’t sound like good business sense. There are more hurdles for PRPPs forthcoming…

Friday, January 11 at 11:16 am | Reply

Ron Sanderson, Director, Policyholder Taxation and Pensions, Canadian Life and Health Insurance Association (CLHIA):

The federal PRPP Act and regulations are intended as a template for provincial legislation and regulations. Harmonization of such rules is important to minimizing costs and ensuring portability for consumers. Given that federal regulations were only finalized in December, it would have been impractical for provinces to move ahead with introducing their own PRPP rules before that time.

Now that the federal rules are complete, CLHIA is confident that most of the provinces will bring PRPP legislation forward in 2013.

Friday, January 11 at 11:59 am | Reply

Mike Murphy:

Why would the provinces follow the Feds lead into a pension scheme that won’t address the real issue: Most Canadians fear they will not have enough retirement funds to live on. Perhaps the Feds should for once follow the provinces lead and enhance the Canada Pension Plan so that all Canadian workers will have some chance of a decent retirement down the road. Better still why doesn’t the Fed look at a second mandatory state pension system like Britain just did. One where it’s the employees and not the employers that will have the option of opting out. See: http://www.bbc.co.uk/news/business-21017013 for details.

Monday, January 14 at 12:21 pm | Reply

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