Tuesday, 1 January 2013

Pooled Registered Pension Plans with The Honourable Peter Van Loan Leader of the Government in the House of Commons

listen to the show
February 1rst 2012 AT 4:30PM

Direct from Ottawa
topic Pooled Registered Pension Plans (PRPPs)

The Honourable Peter Van Loan
Leader of the Government in the House of Commons

York–Simcoe (Ontario)

Peter Van Loan was first elected to the House of Commons in 2004 and re-elected in 2006, 2008 and 2011. Mr. Van Loan was appointed President of the Queen's Privy Council for Canada, Minister of Intergovernmental Affairs and Minister for Sport in November 2006, and was named Leader of the Government in the House of Commons and Minister for Democratic Reform in January 2007. He was appointed Minister of Public Safety in October 2008 and Minister of International Trade in January 2010.
Prior to entering public life, Mr. Van Loan worked as partner and chair of the Planning and Development Law Group with the national law firm Fraser Milner Casgrain LLP. He has also been an adjunct professor of planning at the University of Toronto.

Mr. Van Loan has been active in the community, serving as a member of the Georgina Economic Development Committee, a former executive member of the Canadian Bar Association – Ontario, Municipal Section, and a member of the Ontario Brownfields Advisory Panel.
Mr. Van Loan obtained a master of science degree in planning and a master of arts in international relations from the University of Toronto and a law degree from Osgoode Hall Law School.

- Mr. Van Loan -Leger Marketing poll released Tuesday said that  Ottawa’s new Pooled Registered Pension Plans (PRPPs) are supported by 68% of employers not already offering a pension plan,  a poll  of 803 senior managers in small and medium sized Canadian businesses showed that 71% agree employers should be required to offer some form of pension to workers.  Are executives and owners of small and medium sized businesses are they “ready to embrace PRPPs as they look for new ways to keep employees and attract new people. There seems to be a fundamental shift” in the pension landscape in small size businesses in Canada that supports Ottawa’s new initiative ?

Mr. Van Loan -The conservative government  has been studying all aspects of Canada’s pension and retirement savings options for several years now. Some of that research noted that many middle-income Canadians are not saving enough to maintain their current standard of living in retirement? Is that the root the problem that Canadians are not saving enough?

-Mr.Van Loan The Conservative government moved Tuesday to limit debate on a pension reform bill that will create new Pooled Retirement Pension Plans. You argued the move to invoke a process called “time allocation” was justified because the Conservatives won the last election by campaigning on the need for Pooled Registered Pension Plans PRPPs. Why is the opposition  so determined to keep Canadians from having that option?”

-Mr.Van Loan The debate over PRPPs comes as pension reform has suddenly jumped to the top of the
political agenda in Ottawa. Prime Minister Stephen Harper surprised many last week by signaling changes that are needed to Old Age Security to ensure that it is sustainable, are changes raised speculation the government intends to change the eligibility for Canada's Old Age Security to reduce its cost as more baby boomers retire in the coming years. Is that true are there going to be changes to the old age security?

Mr.Van Loan -The government argues that Pooled Registered Pension Plans PRPPs will help by targeting employees of small businesses that do not currently offer workplace pensions. These small businesses would auto-enroll new hires into the system, though workers would have the right to opt out. Federal rules would not force employers to contribute to their workforce Pooled Registered Pension Plans PRPPs, though provinces could make such contributions mandatory. So which jurisdiction does the  Pooled Registered Pension Plans fall into the federal or provincial ?

The contributions to PRPPs would be managed by the private sector at “low cost,” but the legislation does not define what low cost will mean in practice.
(With the bells calling MPs to vote on the motion, NDP MP Chris Charlton held a hurried news conference to announce that – as opposition whip – she would be refusing to perform her ceremonial duties of walking down the aisle with Mr. Van Loan to kick off the vote as a form of protest.
She said it was “absolutely ridiculous” for the government to move time allocation after one day of debate. Ms. Charlton claimed the move is connected to controversy over Mr. Harper’s speech last week in which he signalled changes were coming to Old Age Security.
{This is not completely true as there are not yet enough sepcific funds.  It is in part true and I will discuss a few appropriate funds.  These are not, however, a retirement vehicle for seniors but rather are appropriate for younger investors}