Entirely new workplace retirement savings plan coming soon
The federal government passed the Pooled Registered Pension Plans (PRPP) Act in 2012, formally recognizing that greater access to workplace savings programs is needed to help Canadians adequately save for retirement.
PRPPs will improve the range of retirement savings options available to those who do not already have access to a pension plan, such as the self-employed or employees of companies that do not currently offer a workplace retirement savings plan.
The PRPP will be a great tool for business owners to help foster employee morale, retain their best people and attract top talent.
Each province must pass its own PRPP legislation before the plan can be provided to private businesses and self-employed individuals within the province. On December 3, 2013 Quebec took an impressive step forward by passing the Voluntary Retirement Savings Plan Act (VRSP), becoming the first Canadian province to make implementing a workplace retirement savings plan mandatory for employers. The VRSP will come into effect in Quebec on July 1, 2014. (The VRSP is Quebec’s version of the Pooled Registered Pension Plan.) You can learn more about VRSPs in Quebec at www.vrsp.com
This site will provide you with an overview of the PRPP and how it will help small business owners and employees. Before Manulife or any company can offer you a PRPP, all potential administrators must apply to the regulator(s) for licenses to act as administrators and seek regulatory approvals for their proposed product. We’ll keep you informed as developments progress.