Abstract
The potential impact the federally proposed Pooled Registered Pension Plan could have on the Canadian pension landscape depends upon the incentive structure within the plans design. The ability of the new pension scheme to achieve lower investment management fees is important, however, other design tools should not be over looked. The impact of employer costs, automatic enrollment and other design elements are also critical in determining whether the PRPP will
improve upon the current market for pension in Canada. The overall impact this plan is not yet clear since no province has implemented it, however, economic theory and examples from Canada and the USA can help make useful predictions. The analysis within this paper leads to the conclusion that a number of specific design features of the PRPP deserve particular attention.
Refereed
Yes
