What is the Pooled Registered Pension Plan (PRPP)?
Governments across Canada are aiming to increase the number of workers who have access to a group retirement program.
To this end, various jurisdictions with regulatory oversight of pension plans, have introduced legislation to support this initiative.
A plan for federally regulated entities
Effective since December 14, 2012, it allows federally regulated entities1 to voluntarily establish a PRPP for their employees. Eligible administrators will be entitled to offer the federal PRPP after they receive their license to be PRPP administrators and their plan documentation is registered by the Office of Superintendent of Financial Institutions Canada and by the Canada Revenue Agency.
For Alberta, Saskatchewan and British Columbia
The rules that will apply to PRPPs in those provinces will be patterned after the rules applying to federal PRPPs, except for certain technical rules and the regulations (still to come). We will provide more details once the corresponding regulations will be released. British Columbia has also introduced similar PRPP legislation that must pass through the usual parliamentary process before it takes effect.
For other provinces
Other provinces have not yet defined their pension solution.
We will continue to provide updates to changes on provincial legislation as new information comes to light.
1 Additional information on federally regulated businesses and industries on the webpage of Labour Canada can also assist you.