Third, we also appreciate the fact that the employer does not have a fiduciary responsibility with respect to this new type of plan. This new plan should be attractive to employers, employees and the financial institutions that will offer it. So the framework would have to be simple and the obligations for administrators clear in order to generate interest from a minimum number of institutions, which would encourage competition. However, the devil is in the details. The simpler the plan is to implement and administer, the more chance of it being established successfully.
Pooling funds and simplifying the regulation and management of the retirement contributions by a financial institution should make it possible to reduce the administrative costs of the plan and the costs associated with investment management. So that the costs are reduced and the savings in place, there need to be enough participants and contributors. So it is important that there be a certain coordination and harmonization between the plans that would be offered by the employers in the various provinces and by federal employers targeted by this bill.
To conclude, this bill is clearly an interesting part of the solution for the issue of retirement savings, but it isn't the only one.