The Draft Report proposes the creation of Canada-wide pooled
registered pension plans (PRPPs) as a mechanism to enhance
retirement savings in lieu of further enhancements to the Canada
PRPPs would be large, independent, defined contribution pension
plans in which employers, employees and the self-employed could
enroll. A registered financial-sector administrator would be
responsible for managing the collective investment of the PRPP fund
and overseeing day-to-day plan administration. Participants would
benefit from both a PRPP's economies of scale and the array of
investment offerings tailored to participants' goals and levels
of risk tolerance.
Crucially, the Draft Report proposes that only "regulated
financial institutions that are capable of taking on a fiduciary
role" would be eligible to administer PRPPs. The Draft Report
also specifies that this would include "trust and insurance
companies, and other financial institutions with a trust
This is a draft document. Minister Flaherty is encouraging his
provincial and territorial counterparts to reach agreement on a
final framework document for stakeholder input by the summer of
2011. Accordingly, there will be time for interested parties to
make submissions. There will no doubt be requests to modify the
framework to broaden the class of eligible administrators to
include entities such as existing pension administrators,
investment dealers, specially incorporated subsidiaries or
PRPPs represent an exciting opportunity to expand the retirement
savings vehicles available to Canadians. Financial institutions
seeking to offer PRPPs will want to stay on top of this proposal in
order to develop timely and appropriate products and services.
Employers should also stay on top of these proposals so that the
final framework document reflects their needs and concerns.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Unfortunately, reasonable accommodation for employees in the workplace continues to be the source of significant litigation and even today we continue to see outrageous examples of employers behaving badly.
A former teacher at Bodwell High School has learned a valuable lesson from the B.C. Human Rights Tribunal— it is not discriminatory for an employer to offer child-related benefits to only employees with children.
We are now beginning to see reported cases involving charges and subsequent fines laid against employers for failing to provide information, instruction and supervision to protect a worker from workplace violence.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).