Banking lobbyists are calling on the provinces to enact legislation to facilitate the creation of Pooled Registered Pension Plans (PRPPs).
The Canadian Bankers Association said Wednesday that it has written to premiers across the country asking them to enact provincial legislation that will help launch PRPPs, the new retirement savings vehicle that the federal government hopes will fill some of the shortfall in the retirement provisioning of many Canadian workers.
The federal government has already passed legislation enabling PRPPs, and the CBA says that now the federal framework is in place, provincial and territorial governments must adopt legislation, too. It notes that Quebec has introduced a legislative framework for its Voluntary Retirement Savings Plan (VRSP), but that no other province or territory has yet taken similar steps.
“We have had discussions with a number of provinces about the importance of putting the necessary provincial frameworks in place so that this type of low-cost workplace pension plan can be made widely-available, and we have had some positive feedback,” said Terry Campbell, president of the CBA.
“We are urging all provincial and territorial governments to quickly enact legislation. While there may be interest in further discussions about other issues related to Canadians’ retirement savings, it is important that the PRPP not get mired down in those deliberations and that Canadians can begin to benefit from the PRPP,” he added.