Will benefit both workers and employers
TORONTO, Nov. 18, 2011 /CNW/ - Sun Life Financial welcomes the introduction of the Pooled Registered Pension Plan (PRPP) as it demonstrates the commitment by federal, provincial and territorial governments in Canada to meaningfully address the concerns of millions of working Canadians by ensuring they have access to a workplace retirement savings plan.
"This is the most significant piece of pension legislation in more than a decade," said Tom Reid, Senior Vice-President, Group Retirement Services, Sun Life Financial. "As Canadian policy-makers continue to work together and adopt the PRPP framework and legislation, it is Sun Life's hope that the reforms can be harmonized across the country. Complementary provincial legislation will be essential so that all working Canadians have universal access to an affordable workplace retirement savings plan."
The PRPP will allow small and medium-size employers (who do not currently provide retirement saving plans for their employees) to band together to form low-cost pension plans administered by a well-regulated provider, such as Sun Life, Reid said. By pooling larger numbers of people under one plan, employers will be relieved of many of the responsibilities and costs associated with plan administration and employees will benefit from low-cost plans achieved by economies of scale.
"The PRPP legislation is an important, much-needed and well-targeted reform to Canada's retirement system," Reid said. "It reflects an equitable balance of responsibility among individuals, employers and government that is key to the success and sustainability of our world-class pension system."
"We look forward to reviewing the details of the proposed PRPP legislation and providing our perspective to help ensure that Canadians continue to be well-served by these pension plan reforms," he said.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of September 30, 2011, the Sun Life Financial group of companies had total assets under management of $459 billion. For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
Note to Editors: All figures in Canadian dollars.