Mr. Speaker, with regard to (a), at the December 2010 finance ministers’ meeting, all finance ministers agreed on a framework for pooled registered pension plans, PRPPs. Bill C-25 provides a legal framework for the establishment and administration of PRPPs for those who fall within the legislative authority of the federal government, including interprovincial transportation, banking and telecommunication. Provinces will need to introduce their own enabling legislation to make PRPPs available throughout Canada. The federal legislation is intended to be a model that the provinces can use to implement PRPPs within their own jurisdictions. A high level of harmonization of pension regulations across jurisdictions will be instrumental in increasing the availability of PRPPs and, more importantly, achieving lower costs. The federal government encourages provinces to implement the framework in a timely manner to help Canadians reach their retirement objectives.
With regard to (b) and (c), PRPPs will facilitate low costs through their scale and design. These plans will result in large pooled funds that will enable plan members to benefit from the lower investment management costs associated with such funds. The design of these plans will be straightforward, and these plans are intended to be largely harmonized across jurisdictions, which will facilitate lower administrative costs. In addition, the PRPP act requires the administrator to offer the PRPP at a low cost to plan members. The criteria for determining whether a PRPP is low cost will be set out in the accompanying regulations and will be monitored by the Superintendent of Financial Institutions. Finally, plain-language disclosure of all costs and fees will ensure transparency and facilitate price competition among administrators.