Federal Pooled Registered Pension Plans Now Available

On October 7, 2014 the final piece of the puzzle was put in place to allow federally regulated PRPPs to become a reality across Canada.

In making the announcement, Minister of State (Finance) Kevin Sorenson announced that five insurance companies have been issued licenses by the Office of the Superintendent of Financial Institutions and Canada Revenue Agency to manage PRPPs in Canada.

The five insurance companies are:

• Sun Life
• Great-West Life
• Manulife
• Standard Life
• Industrial Alliance

Since Federal legislation received Royal Assent on June 28, 2012, the actual implementation of the PRPP has been on hold while licensing was put in place for plan administrators. This now clears the way for PRPPs to finally become a reality.

It is important to note that at this point only employees that are within the legislative authority of the federal government as well as persons employed in the Yukon, Northwest Territories and Nunavut are affected by this legislation.

Pension legislation, in general, falls under legislation of the provinces and to this point only Alberta, Saskatchewan and Quebec have passed legislation to make PRPPs a retirement option to employees of their provinces. Quebec has instituted the Voluntary Retirement Savings Plan (VRSP) while Alberta and Saskatchewan have yet to set an actual launch date for their PRPPs. Legislation for British Columbia has been tabled but not yet passed into law.

Reported by Alan Rowell, MFA and DFA-Tax Services Specialist. Alan is based in Stoney Creek, ON and will be a featured speaker on the upcoming November DAW tour.