Bill C-25 Prpps

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Assignment 1: Legislative Monitoring and Assessment Bill C-25: Pooled Registered Pension Plans Act (PRPP) Oral Presentation: I choose this legislative topic to monitor and assess because it is one that I can relate to personally. In a recent survey conducted by Statistics Canada, it was determined that over 60% of Canadians do not have a workplace pension plan and no retirement savings. Past statistics have proven that people save more through a workplace pension plan. I currently work for a company that does not have a pension plan in place for its employees. After saying that, I am very excited to say that our company is looking into a pension plan for 2013. I would like to discuss a bill which just recently received Royal Assent.…show more content…
Bill C-25, the Pooled Registered Pension Plans Act, received Royal Assent on June 28, 2012, which implements the federal portion of the PRPP framework. The PRPP framework will be fully in place across Canada pending provincial enabling framework. Quebec is the first province to put in place enabling legislation for their version on the PRPP, known as the Voluntary Retirement Savings Plan (VRSP). In its 2012-2013 budget, the Quebec government announced that the Voluntary Retirement Savings Plan (VRSP) is slated to take effect on January 1, 2013. While VRSPs are similar to the federal government’s proposed pooled registered pension plans (PRPPs), the planned legislation contains one major difference: unlike PRPPs, VRSPs will be mandatory for employers. The history of the change/issue: Bill C-25: Pooled Registered Pension Plan…show more content…
The PRPP framework will be fully in place across Canada pending provincial enabling legislation. Ontario’s Position on the Federal PRPP Model: Ontario believes that the protection of plan members is critical to the success of PRPPs. Ontario has a number of concerns with the federal model as currently proposed. Some of these concerns are: * PRPPs may simply replace on form of retirement arrangement with another, instead of expanding retirement income savings and coverage; * It is unclear if the PRPPs fiduciary framework adequately protects plan members; * It is uncertain whether compulsory employee contributions would be flexible enough to allow for various life events, such as divorce or periods of financial hardship; * The extent to which PRPPs could achieve their low-cost objective is unclear;

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