Toronto, ON (Dec. 8, 2014) – “We welcome today’s introduction of PRPP legislation in Ontario,” says Frank Swedlove, President and CEO of the Canadian Life and Health Insurance Association (CLHIA). “Ontario joins six other jurisdictions in Canada that have already passed PRPP legislation to improve access to workplace pensions for their workers.”
PRPPs are a simple, low-cost pension innovation that is particularly attractive to small businesses who don’t want the administrative burdens of traditional pension plans. By pooling many employers together, they offer economies of scale usually seen only with the very large pension funds.
“We firmly believe that PRPPs are what is needed to improve access to workplace pensions and improve the retirement income prospects of Ontario workers,” adds Swedlove.
As for the introduction of the ORPP legislation, the industry notes that there are, as yet, very few details available and caution will be needed as the government fleshes out those details. An important consideration in the implementation of the ORPP is what will happen with existing pension plans that people have at the workplace. “A balanced approach will be needed to ensure that the ORPP doesn’t undermine existing plans and disadvantage Ontario workers. The very real risk is that Ontario workers will be worse off if employers with already attractive plans find themselves unable to continue those plans if they are required to offer the ORPP,” cautions Swedlove.
About the CLHIA
Established in 1894, the CLHIA is a voluntary association whose member companies account for 99 per cent of Canada’s life and health insurance business. The industry provides a wide range of financial security products such as life insurance, annuities (including RRSPs, RRIFs and pensions) and supplementary health insurance to 28 million Canadians. It also holds close to $647 billion of assets in Canada and employs about 150,100 Canadians.
Source: Canadian Life and Health Insurance Association Inc.