Tuesday January 31, 2012

Federal Government News

Old Age Security

Small business, self employed benefit from new registered retirement plan

Released by Robert Pearsall, PA to MP Mark Strahl/file photo


peaking in the House of Commons, Chilliwack-Fraser Canyon MP, Mark Strahl, urged passage of Bill C-25: Pooled Registered Pension Plans Act.


"Hardworking Canadians, without a private pension plan, have called for this type of retirement savings vehicle." Strahl added, "Passage of this bill will mark a significant step forward in securing their retirement."

Pooled Registered Pension Plans (PRPP) will allow small and medium sized businesses, their employees and those who are self-employed to pool their money to provide for accessible, straightforward and administratively low-cost pension plan by reducing the legal and administrative burden faced by employers. It is because of these costs that 60 per cent of Canadians don't have access to a private pension plan.

According to Strahl, PRPPs offer a number of benefits, including:

  • easy enrolment due to low administrative cost and simple arrangement,

  •  flexibility for employees and employers in setting their contribution amounts; and

  • portability, allowing employees to move their account as they change careers and employers.
    "Millions of Canadians stand to benefit from access to this new low-cost pension plan with the passage of this bill."

For more information, please visit: www.fin.gc.ca/act/prpp-prac/index-eng.asp

For more information from Mark Strahl, visit: www.markstrahl.com




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