This Old Economist: Jim Flaherty’s idea is off course PT 1

Ever heard of a PRPP? NO?

It stands for ‘stup-rpp-id idea.’

Yesterday, after I read that Canada’s finance ministers “agreed to move forward with Finance Minister Jim Flaherty’s idea to develop a pooled private pension system [PRPP] designed for workers without a corporate savings plan.” (Dec. 21, London Free Press)

Undoubtedly, already you can see something stup-rpp-id about the idea.


["Reduce spending, pay down debt, save for tough times"]

Canada already has a ‘pension system designed for workers without a corporate savings plan’. It’s called the Canada Pension Plan (CPP). It’s already set up. It already sends out millions of cheques each month to retirees, myself included.

Yes, as Flaherty says, “there is a group of people who work for relatively small employers or who are self-employed who don’t have the option now of a pension plan...”

And though he says, “this new initiative will help alleviate that,” I say, tell the self-employed and those who work for small employers to step under the CPP umbrella. Jim, send them a form in the mail. Tell them it’s mandatory.

But don’t set up another system. The administrator of the all-new (though not really) PRPP plan will need a new building, computers, staff - from CEOs to custodians - new perks and cars, etc.

All you really need to do is send out a form!

And while you and the boys are studying the idea to death, more people are retiring without enough to help them survive. So, not one new nickel should go toward the stup-rpp-id new plan.

Get with it, Jim. It’s mandatory.

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Would a PRPP have helped the Nortel employees left out in the cold?

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