The Canadian Federation of Independent Business (CFIB) has expressed its support for Canada’s new pooled registered pension plan (PRPP) legislation—and requested the government not support an increase to Canada Pension Plan premiums.

“With ongoing hikes in employment insurance premiums, many workers’ compensation levies as well as provincial minimum wages, small employers cannot afford another increase in mandatory payroll taxes,” says Dan Kelly, CFIB’s senior vice-president of legislative affairs. “This new vehicle should be allowed to work before any contemplation is given to other costly approaches.”

The CFIB sent a letter to all provincial finance ministers today, expressing concern that some provinces may require small firms to register for PRPPs and auto-enroll employees.

“Our greatest concern is that some provincial governments could take away one of the most important features of the PRPP model—the fact that it is fully voluntary,” says Kelly.

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

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