Monday, December 20, 2010

The Pooled Registered Pension Plan is a glorified RRSP

Gil McGowan, president of the Alberta Federation of Labour, writes an interesting commentary in the Calgary Herald about federal finance minister Jim Flaherty's proposed Pooled Registered Pension Plan.  The banks prefer this over an increase in the premiums to the Canada Pension Plan because the banks would be guaranteed funds for investment.  They would also be able to charge contributors to the proposed PRPP.  Businesses will like the PRPP since they may not be required to contribute the same share as they do for the current CPP.

The [banking and financial] industry fears that if Canadians are able to invest more of their money through CPP then they'll put less money into things like private mutual funds.

And reduced investment in mutual funds would mean fewer bonuses and fewer and BMWs for bankers and mutual fund managers (heaven forbid!)

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