Evidence of meeting #43 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was prpp.
A recording is available from Parliament.
4:30 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
Comparing it to the CPP, is there choice for employers or employees to opt in at any point, opt out at any point, or set the levels they want to put in?
4:30 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
That is the major difference with this. I want you to take a moment to perhaps explain it so that the opposition understands—
4:30 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
—that there is in fact a serious problem with trying to force people who cannot afford it. Perhaps right now they can't afford it. Perhaps in two or three years they could afford it.
The difference again between the PRPP—for those folks who can't afford it today but maybe can in two years—and the CPP, for those folks who have that problem....
4:30 p.m.
General Director, Financial Sector Policy Branch, Department of Finance
You're correct in the sense that people can opt out at the front end because their circumstances just don't allow them to make those contributions, but to the extent that their employer is a participating employer they can choose to join at a later date. What the employer cannot do, though, is force the auto-enrolment of somebody who has opted out at the front end.
4:35 p.m.
Conservative
4:35 p.m.
General Director, Financial Sector Policy Branch, Department of Finance
Correct.
4:35 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
If an employee had a pension plan, a PRPP at McDonald's, say, which is usually one of the starting jobs, and then moved to a job working as a clerk at Home Depot or something, there is a mobility factor if those employers are offering PRPPs. Correct?
4:35 p.m.
General Director, Financial Sector Policy Branch, Department of Finance
The design of the PRPP is intended to encourage portability, so that if you do change employers you can maintain your PRPP. You can take it with you.
4:35 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
Again, every time they make this change in employment, choice follows that PRPP as well, correct? Opting in and opting out follow them, correct?
4:35 p.m.
General Director, Financial Sector Policy Branch, Department of Finance
That's correct.
4:35 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
They would have options all the way through their careers—because nowadays many people have a number of careers. They would have options continually along their careers as to what their financial status is and whether or not they want to put extra money toward this pension plan, correct?
4:35 p.m.
General Director, Financial Sector Policy Branch, Department of Finance
That's correct.
4:35 p.m.
General Director, Financial Sector Policy Branch, Department of Finance
It's mandatory.
4:35 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
Thank you. I just wanted to make sure that was clarified, because I continue to hear this comparison and I just don't understand why the opposition doesn't get it. It is a mandatory versus a voluntary—
4:35 p.m.
Conservative
Shelly Glover Conservative Saint Boniface, MB
—situation, which I, as a mother of five.... People who have children, who have really not considered what the future holds for them, when I explain it to them, seem to get it right away and are anxious to participate.
Do we have any kind of a timeline set out yet with regard to when the provinces might start to put their ducks in a row?
4:35 p.m.
General Director, Financial Sector Policy Branch, Department of Finance
We've been working collaboratively with the provinces and territories all the way through this. The only province that has publicly made a commitment is the Province of Quebec. As the minister indicated, it made a commitment in its budget of last year, and I understand Quebec is hopeful it can get this regime in place by the end of this year as well.
4:35 p.m.
Conservative
4:35 p.m.
General Director, Financial Sector Policy Branch, Department of Finance
That is their objective.
