Strengthening Ontario's Retirement Income System
Province Releases Discussion Paper on Pooled Registered Pension Plans
Ontario is asking for public input on Securing our Future: Strengthening Retirement Income in Ontario through Pooled Registered Pension Plans, a discussion paper that lays out a framework for implementing pooled registered pension plans in the province.
In the 2013 Fall Economic Outlook and Fiscal Update, Ontario announced a bold new plan to strengthen retirement income. The plan consists of three strategies:
- Enhancing the Canada Pension Plan and introducing retirement savings tools like PRPPs and target benefit plans for those without workplace pensions.
- Working to reduce costs and improve financial literacy for those with self-directed savings.
- Helping to ensure Ontario's defined benefit plans remain sustainable.
The introduction of PRPPs would offer employees and the self-employed an additional retirement savings tool and could complement an enhancement to the Canada Pension Plan.
Creating a strong and secure retirement income system is part of the government's plan to invest in people, one of the three pillars of the government's economic plan to build modern infrastructure and support a dynamic and innovative business climate across Ontario.
- Research indicates that many people could face inadequate retirement savings, due in part to an aging population with increasing life expectancy and declining coverage of traditional employer pension plans.
- The government has supported many changes to Ontario’s pension system in recent years, including implementing reforms from the 2008 Report of the Expert Commission on Pensions and releasing Securing Our Retirement Future: Consulting with Ontarians on Canada’s Retirement Income System in 2010.
- PRPPs are a new form of tax-assisted retirement savings for individuals. They are intended to make it easier to save for retirement by providing people with a low-cost savings vehicle that is professionally managed and can move with the employee through their career.
- The Canadian government recently implemented legislative changes necessary to support the introduction of PRPPs for employees under federal jurisdiction.
- The 2013 Ontario Economic Outlook and Fiscal Review committed the government to holding consultations before introducing legislation to make PRPPs available in the province.
- Members of the public wishing to submit responses to the paper must do by Jan. 20, 2014 either by email or by sending to: Framework for Pooled Registered Pension Plans Strategic Pension Reform Secretariat Ministry of Finance 7 Queen’s Park Crescent 5th Floor Frost South,Toronto, ON M7A 1Y7.
- Read Securing our Future: Strengthening Retirement Income in Ontario through Pooled Registered Pension Plans.
- Read the new retirement income strategy that was laid out in the 2013 Ontario Economic Outlook and Fiscal Review.
- Provide email comments and feedback on the consultation paper.