“PRPPs have helped to change the pension conversation because they’ve created conversation,” says Sue Reibel, senior vice-president and general manager, group retirement solutions, with Manulife Financial.

The federal government’s announcement in November that it would be going ahead with pooled registered pension plans (PRPPs) sparked debate among politicians, industry experts and Canadians as a whole. And it’s that debate that has opened the doors for conversation on the state of Canada’s pension system.

Reibel says that discussion of PRPPs has brought better awareness and understanding of the need for better retirement security for Canadians.

Watch the video to find out what else Reibel has to say.

Signs of success
The Saskatchewan Pension Plan has been touted as a model for the national framework—and it’s a model that’s showed strong success and is needed for Canada’s small business community, says Katherine Strutt, general manager with the plan.

Strutt says that PRPPs will be most beneficial for small-size employers. “The larger employers are looked after through group RSPs and through their own registered pension plans,” she says. “[Smaller employers] really aren’t being served by the rest of the financial community.”

Watch the video to find out what else Strutt has to say.

But is it enough?
Greg Heise, a partner with Morneau Shepell, says that while implementing PRPPs would bring several advantages to both employees and employers, “I don’t think necessarily just the existence of this vehicle will result in Canadians wanting to contribute more. There needs to be some mechanisms in place to encourage them to do that.”

Watch the video to find out what else Heise has to say.

For more on PRPPs, visit benefitscanada.com/prpp.

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

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