The Pooled Registered Pension Plan (aka PRPP) was getting closer to coming to fruition in British Columbia as per the February 28, 2013 announcement (see article below).
However, on March 14, 2013, Bill 16 (the B.C. Pooled Registered Pension Plans Act) died on the order paper leaving a newly elected B.C. government to reintroduce another PRPP Act after the upcoming May 14, 2013 election. Source: Standard Life
The concept of a PRPP has been gaining strong support as many Canadians aren’t adequately prepared for retirement.
BC Legislation Created for PRPP
As per a Recent Article by The Canadian Press – Story: 88121 Feb 28, 2013 / 4:59 pm – here are some details:
British Columbia has become the first province in Canada to create legislation for group pension plans to help into retirement, the two-thirds of residents who can’t access such plans.
B.C. Finance Minister Mike de Jong introduced the Pooled Registration Pension Plans Act on Thursday, saying the plan gives the option for one more safety net for thousands in the province. “It’s not the flashiest of subjects,” de Jong admitted at he announced the legislation to reporters. “Yet, increasingly, people are becoming aware of the fact that we all have a personal responsibility to ensure that we have sufficient means at our disposal as we head towards our retirement years.”
The plans would be managed by licensed financial institutions and focus on workers who don’t have a pension plan, including those who are self-employed. Workers whose employers set up the pooled plan aren’t obligated to get involved and employers aren’t required to match contributions.
It’s legislation intended to make well-regulated, low-cost pension plans available to residents, especially employees of small- and medium-sized businesses, de Jong said.
The bill is part of a national effort to make low-cost pension plans available to millions of Canadians who don’t have other plans, and follows on the heels of similar federal government legislation.
ENCOMPASS will keep you posted as more details become available.
Need Help Setting Up a PRPP?
Althought the PRPP is stalled for now in B.C., it should remain on the radar of employers that currently do not offer a group retirement savings plan for their employees.
If you are an organization that wants to get a jump-start on getting started, ENCOMPASS Benefits can assist you in meeting the upcoming obligations set forth by the federal and provincial governments.
Please contact the ENCOMPASS team.
