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SOMBA K'E/YELLOWKNIFE
Members of the Yellowknife business community are enthusiastically welcoming new federal plans to strengthen retirement security, announced during last week's visit by Minister of State for Finance, Ted Menzies.

Menzies kicked off his visit to the NWT and Nunavut at the Explorer Hotel on Thursday.

He addressed members of the territory's business community as part of his summer cross-Canada tour to consult stakeholders about the latest economic action plan initiative, Pooled Registered Pension Plans (PRPP).

"The PRPP is a new kind of defined contribution plan available to employers, employees, as well as the self-employed," Menzies said. "PRPPs will play a critical role in improving the range of retirement options available for all Canadians by providing a low-cost retirement savings options vehicle. This is especially important to small businesses."

Yellowknife business owner Kirby Marshall was among 80 people at the luncheon, hosted by the NWT Chamber of Commerce, the Northern Aboriginal Business Association, the NWT and Nunavut Chamber of Mines and the Yellowknife Chamber of Commerce. Kirby applauded the initiative.

"I was very happy with his announcement and I think it's long overdue," Marshall said.

Running his business Global Storm IT over the past 20 years, Marshall has looked for a way to implement something for his now 13 employees, who have no retirement plans.

"Without what the federal government is announcing, they probably never would," Marshall said. "It's simply not feasible for a small business."

Yk Chamber of Commerce executive director Tim Doyle echoed Marshall's stance, adding that small businesses make up the majority of the chamber membership and businesses in Yellowknife, and unlike the mines, banks, and government arms, they do not have the deep pockets to offer retirement plans.

"Employees should be looking at ways to save," chamber executive director Tim Doyle said. "This is a great way to do this right off your payroll, won't cost (the employer) anything. The chamber is in support."

There is no cost for businesses to set it up, according to Doyle, and they're not obligated to contribute to the employee's retirement fund. Doyle added that a number of the plan's details still need to be decided as it's just at an introductory stage.

Marshall said he will be the first one applying when the program is rolled out.

"This new retirement savings vehicle is fabulous," he said. "It will make us small businesses in the North more competitive with the big players," he said, noting attracting and retaining qualified workers in the technology industry is especially difficult.

The introduction of the PRPP framework was agreed upon last December by Canada's finance ministers, who have been meeting on a regular basis to determine how each jurisdiction will implement the plan.

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