NS Dives into Pooled Registered Pension Plans (PRPP)
June 30, 2016
By Hugh Wright, CEO/Managing Partner at McInnes Cooper,
Rhea McGarva, Litigation Director of Research at McInnes Cooper
As of June 25, 2016, provincially regulated workers and employers in Nova Scotia, Quebec, BC and Saskatchewan can participate in Pooled Registered Pension Plans (PRPP) regulated by the Federal Government. Pan Canadian PRPPs can now be offered on a cost-effective basis in participating jurisdictions, with regulation and supervision occurring largely or entirely at the federal level.
PRPPs are an alternative funding and administrative model for pension plans that allow employers and non-employment based groups to participate in pension plans offered by qualified financial institutions. Small and medium-sized business (SME) employers, in particular, will benefit from the anticipated efficiencies and investment leverage that PRPPs offer.
PRPPs have been gaining momentum in Canada over the last two years. Nova Scotia introduced PRPP legislation in October 2014, sought public input on the draft laws in Fall 2015 and the PRPP laws took effect in May 2016. The other participating provinces have taken similar steps. The final step to making PRPPs a reality in NS, BC and Saskatchewan (and Quebec to facilitate PRPP administration with Quebec’s Voluntary Retirement Savings Plans) was signing the Multilateral Agreement Respecting Pooled Registered Pension Plans And Voluntary Retirement Savings Plans to facilitate the administration and oversight of PRPPs. The participating provincial governments signed the Multilateral Agreement on June 7, 2016, and the Federal Government signed it on June 10, 2016. The Multilateral Agreement took legal effect on June 25, 2016.
Please contact your McInnes Cooper lawyer or any member of our McInnes Cooper Pensions and Benefits Team to discuss this topic or any other legal issue.
McInnes Cooper has prepared this document for information only; it is not intended to be legal advice. You should consult McInnes Cooper about your unique circumstances before acting on this information. McInnes Cooper excludes all liability for anything contained in this document and any use you make of it.
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