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. Standard Life has obtained registration of its PRPP from the Office of Superintendent of Financial Institutions Canada and from the Canada Revenue Agency and, as a licensed administrator, we are now entitled to offer the federal PRPP.
PRPP developments in other jurisdictions
It is expected that the rules that will apply to PRPP’s in other provinces will be patterned after the rules applying to the federal PRPP, except for certain technical rules and regulations specific to each province. Alberta, Saskatchewan and British Columbia have made some progress and have already introduced PRPP legislation that must pass through the usual parliamentary process before the legislation can take effect. We will provide more details once the PRPP Regulations in these provinces are released. Nova Scotia has recently confirmed its intention to create PRPP legislation while other provincial jurisdictions are still considering what their pension solution will be.
We continue to monitor developments across Canada and will provide updates 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.