Finance committee  —and then there will be a default option. If individual plan members don't choose one of those funds, they'll automatically be put in the default option. Each of those funds is going to have its own characteristics, mix of risk, return, etc., but people will have a choice as to what—

Finance committee  These are some very different things here. If you make a deposit at your bank, if it's just a standard retail deposit, you're covered by the Canada Deposit Insurance Corporation up to $100,000.

Finance committee  Yes. It went up a few years ago.

Finance committee  But the PRPP is a trust account essentially, so it's a different account, and...I'm struggling for the right words, but it is protected under pension law essentially, which is separate from CDIC protection. There are protections that are built into the trust laws around that.

Finance committee  I think we have always tried to be very clear. The proposal before us isn't there to resolve all the problems with the pension system, but to offer choices and other options to the 60% of employees who currently do not have access to a plan through their employer.

Finance committee  As you mentioned, pooling is a key feature of making sure the costs are low. RRSPs are set up as a series of individual accounts that have to be administered independently, and that's quite costly. It means that in an RRSP situation people are paying what we call retail sorts of fees—fees that you and I pay as individuals.

Finance committee  I can really only speak to the federal level. Obviously we're hoping this legislation moves forward as quickly as possible. Then there are a number of regulations that need to be put into place to complete the framework. We have been in discussions with our provincial and territorial colleagues about the design of those regulations and the key elements of those.

Finance committee  When we did policy work to develop the PRPP framework, we certainly did spend quite a bit of time looking at examples in foreign jurisdictions, including the Australian example, to see what lessons we could learn from that. What we've tried to do with this framework is import the design elements that have proven to be beneficial and successful and improve on those that seem to have some shortcomings, if you will.

Finance committee  Well, as the minister said, you need full consensus to make changes to the CPP.

Finance committee  You're correct about the formula, and it's my understanding that the test was not met.

Finance committee  People will have some choices, but the fundamental point is that administrators will have a fiduciary duty of care to the members of the PRPPs. They will have to invest in the best interest of those members and they'll have to apply a prudent person's approach to those investments.

Finance committee  I'm sorry, I didn't hear that question.

Finance committee  Well, potential administrators will need to apply to the different jurisdictions they want to offer PRPPs in. At the federal level they would apply to OSFI, and at the provincial level they would go to the relevant administrator. The legislation builds in the ability of the different jurisdictions to delegate the licensing process to each other, so if a province does not want to build the structures needed to essentially create the licensing scheme, they could by agreement delegate that to OSFI, for example.

Finance committee  I don't feel it's my place to speak for the provinces.

Finance committee  I don't think I want to venture down that road.