TSX/NYSE/PSE: MFC
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SEHK:945
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WATERLOO, ON, Sept. 6, 2013 /CNW/ - Manulife Financial is the first
Canadian company to be issued a license to administer federal Pooled
Registered Pension Plans (PRPPs), a new financial solution which many
Canadians want and need.
The company was issued its license to be a PRPP administrator by the
Office of the Superintendent of Financial Institutions (OSFI).
In December 2012, the Government of Canada finalized the Pooled
Registered Pension Plans (PRPP) Act regulations, marking the creation
of a brand-new workplace retirement savings plan - and an innovative
opportunity for Canadians who currently do not have access to a
retirement savings vehicle through their employer.
The OSFI approval is the first step in enabling Manulife Financial to
introduce its new and easily-administered PRPP aimed at helping more
Canadians to save for their future.
"The one thing employers, employees, government officials and industry
experts agree on when it comes to our retirement savings system is that
many Canadians are not saving enough," said Sue Reibel, Senior Vice
President, Group Benefits and Retirement Solutions at Manulife. "As a
leader in providing group retirement solutions to Canadian business,
Manulife is committed to helping to close that gap. PRPPs have been
designed to make it simple and easy for Canadian small businesses to
provide a cost effective retirement savings plan to their employees."
"I congratulate Manulife on being the first out of the gate to receive
official approval to administer PRPPs," said Kevin Sorenson, Minister
of State for Finance. He added, "Our government encourages those
provinces that haven't tabled PRPP legislation to do so quickly. All
Canadians should be able to take advantage of this new and innovative
low-cost savings option. PRPPs will help address a gap in private
savings and leave more money in the pockets of savers."
Important first step
Once final registration of Manulife Financial's PRPP product is received
from OSFI and the Canada Revenue Agency (CRA), the product can be
offered to federally-regulated businesses across Canada, and to any
business or self-employed individuals within the Yukon, Northwest
Territories and Nunavut. Employees of businesses in the Yukon, Nunavut
and the Northwest Territories are also eligible to participate in a
PRPP, even if their employer has not yet implemented a formal plan. The
provinces of Saskatchewan and Alberta have also passed their own Pooled
Registered Pension Plans (PRPP) Act. The next step for these provinces
will be to develop the regulations necessary for the legislation to be
implemented. Once other provinces release their own PRPP legislation,
Manulife will offer plans to their residents, businesses and
self-employed individuals.
"Today's approval marks an important first step in enabling many more
businesses to help their employees put money away for their
retirement," added Ms. Reibel. "We are hopeful that the federal
government's efforts will serve as a model for all provinces to move
forward with their own PRPP legislation, in an effort to provide more
Canadians with access to workplace retirement savings plans."
About Manulife Financial
Manulife Financial is a leading Canada-based financial services group
with principal operations in Asia, Canada and the United States.
Clients look to Manulife for strong, reliable, trustworthy and
forward-thinking solutions for their most significant financial
decisions. Our international network of employees, agents and
distribution partners offers financial protection and wealth management
products and services to millions of clients. We also provide asset
management services to institutional customers. Funds under management
by Manulife Financial and its subsidiaries were C$567 billion (US$539
billion) as at June 30, 2013. The Company operates as Manulife
Financial in Canada and Asia and primarily as John Hancock in the
United States.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE,
and under '945' on the SEHK. Manulife Financial can be found on the
Internet at manulife.com.
SOURCE: Manulife Financial Corporation
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