TORONTO, ONTAIO--(Marketwire - Nov. 17, 2011) - The Canadian Bankers Association today welcomed the introduction of the federal legislation for Pooled Registered Pension Plans (PRPPs) and said that its member banks are committed to working with the government as it moves forward on PRPPs.
The banking industry supports the government's goal of providing an accessible, low-cost and easy-to-use option for people who do not now have access to a private sector pension plan. This would include those Canadians who were identified by the Research Working Group on Retirement Income Adequacy as being most at risk of having difficulties maintaining their standard of living in retirement, particularly the self-employed and employees of small businesses.
"PRPPs will make it possible for small and medium-sized businesses to offer to their employees registered pension plans that will be simple to administer. As well, PRPPs will allow self-employed individuals to participate in private sector pension plans for the first time," said Terry Campbell, President of the Canadian Bankers Association.
Canada's banks have well-developed relationships with almost 1.6 million small and medium-sized enterprises (SMEs) as well as significant experience in financial and risk management, making them particularly well placed to design, administer and offer PRPPs. Banks' existing relationships with SMEs can help encourage employer awareness and participation, while their expertise in financial management and product delivery will make it possible to offer high quality and competitive pension savings products.
"Canada's banks are committed to working with the federal government as it moves forward on pooled registered pension plans, and the CBA encourages provincial and territorial governments to introduce similar legislation as soon as possible," said Mr. Campbell.
The CBA will be reviewing the details of the legislation with its members in order to provide feedback to the government.
The Canadian Bankers Association works on behalf of 52 domestic banks, foreign bank subsidiaries and foreign bank branches operating in Canada and their 267,000 employees. The CBA advocates for effective public policies that contribute to a sound, successful banking system that benefits Canadians and Canada's economy. The Association also promotes financial literacy to help Canadians make informed financial decisions and works with banks and law enforcement to help protect customers against financial crime and promote fraud awareness. www.cba.ca.
Follow the CBA on Twitter: http://twitter.com/CdnBankers.