Canada’s Flaherty pushing for pooled pensions

* Hopes to agree on framework with provinces

* Plan would include small business, self employed

OTTAWA, Dec 16 (BestGrowthStock) – Canadian Finance Minister Jim
Flaherty wants to create a new type of pension plan that would
enable more workers to save for retirement.

Flaherty hopes to at least set the groundwork on a pension
deal at a meeting on Monday with his provincial counterparts in
Kananaskis, Alberta.

In a letter to provincial finance ministers, released on
Thursday, Flaherty said he hoped to make progress toward the
introduction of “pooled registered pension plans”, or PRPPs.

“With respect to retirement income, I hope we will be able
to agree on a framework for pooled registered pension plans,”
he wrote.

The defined contribution plans would be administered by a
third party, likely a financial institution, and would allow
small businesses that otherwise could not afford their own plan
to offer a retirement savings vehicle to their employees.

Self-employed workers would also have easier access to a
private pension plan under the proposal.

The plan would require a high level of provincial and
federal regulatory harmonization in order to work, Flaherty
(Reporting by Louise Egan; editing by Rob Wilson)

Canada’s Flaherty pushing for pooled pensions