Ted Menzies - Pooled Registered Pension Plan

Worrying about saving enough for retirement is an issue all Canadians can relate to – especially considering many don't have access to a workplace pension plan.
This has been a concern for our Government – and has been a personal concern of mine – for a long time.
As a former self-employed grain farmer who had no access to a workplace pension for 35 years, I knew the worry firsthand.
That's why our Government spent a lot of time carefully looking for the right ways to help Canadians save for their retirement.
I am proud to say we recently announced one of the ways we are moving forward to help Canadians with their retirement savings, the new Pooled Registered Pension Plan (or PRPP).
This will provide access to a low cost, privately administered and simple registered pension plan.
This is the result of years of hard work with our provincial partners to find an effective way to address a gap in our retirement income system.
PRPPs will increase savings options for the millions of Canadians that currently do not have access to a workplace pension plan – this is especially important for the self-employed and those who work for small businesses.
In the words of the Canadian Federation of Independent Business, the voice of small business in Canada, “PRPPs have the potential to expand the retirement savings options for thousands of Canadian small businesses and their employees.”
So how are PRPPs designed to help Canadians save?
Much more than RRSPs, PRPPs will offer lower costs and greater protection.
Lower costs will be achieved by pooling the funds of several small businesses together.
This will mean a greater purchasing power. In effect, Canadians will be buying in bulk.
Price conscious savers will appreciate the greater returns that large pooled funds will deliver.
PRPPs will also offer greater protection for the consumer.
Professional administrators will need to assume a 'fiduciary duty of care' and ensure that funds are invested in the best interests of plan members.
What does this mean for the average Canadian?
It means greater peace of mind, knowing that your investments are held to a higher standard of care.
I encourage everyone to find out more information on PRPPs at www.fin.gc.ca.