www.insurancerate.com StarBuzz Weekly, Toronto-In December 2010, Canada’s Finance Ministers agreed on a framework for defined contribution Pooled Registered Pension Plans (PRPPs) to provide Canadians with a new, low-cost, efficiently managed, portable and accessible savings vehicle that will help them meet their retirement objectives.
HOW THEY WILL WORK
Because PRPP members will “pool” their pensions through their administrators, costs will be lower.
And by providing this low-cost retirement savings opportunity for employees as well as the self-employed, PRPPs will play a key role in improving the range of retirement savings options available to Canadians.
This is especially important for millions of small business owners and their employees who will now have access to a private pension plan for the very first time.
NEXT STEPS
Federal, provincial and territorial officials are working together to implement PRPPs as soon as possible, engaging with key stakeholders to ensure the framework for these new plans will meet the needs of employees, employers and those financial institutions that may offer PRPPs once they are implemented.
Bill C-25, the Pooled Registered Pension Plans Act received Royal Assent on June 28, 2012, which implements the federal portion of the PRPP framework. The PRPP framework will be fully in place across Canada pending provincial enabling legislation.
With the federal legislation in force, Provinces can now easily and seamlessly use it as a model for their respective frameworks so that the system can get up and running for Canadians on a timely basis.
FIND OUT MORE
Contribute to the discussion
Interested Canadians are invited to submit their views on the implementation of the PRPP framework by email to prpp-consultations-rpac@fin.
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