Released on June 23, 2016
The Government of Saskatchewan has entered into a Multilateral Agreement Respecting Pooled Registered Pension Plans and Voluntary Retirement Savings Plans.
Pooled Registered Pension Plans (PRPPs) are professionally administered, defined contribution style pension plans targeted to employees and self-employed individuals who previously did not have access to a workplace pension plan.
“Pooled Registered Pension Plans will provide Saskatchewan workers with another option to save money for retirement,” Justice Minister and Attorney General Gordon Wyant said. “These plans will be very accessible and will be offered at a low cost to plan members. I am pleased that Saskatchewan is able to be part of a multilateral agreement which will pave the way for employers to set up a pooled registered pension plan for their employees.”
The agreement between the Governments of Canada, Saskatchewan, British Columbia, Quebec and Nova Scotia, and the Autorité des marchés financiers will simplify the licensing and registration process for PRPPs, making it easier for them to be offered.
The new savings tool is a voluntary, large-scale type of pension plan that pools contributions from employees of many different employers together to achieve lower costs for investment management and plan administration. A corporation which holds a licence issued by the federal government will be able to sell PRPPs to Saskatchewan residents without having to get a licence here.
“Our government continues to support voluntary approaches to increasing retirement savings like Pooled Registered Pension Plans which give individuals flexibility and another choice to help meet their financial objectives,” Finance Minister Kevin Doherty said.
PRPP administrators are responsible for the design and operation of each PRPP. Once an employer has joined a PRPP, its employees will be enrolled (with the option to opt out) so they can take advantage of the retirement savings option.
For more information, contact:
Financial and Consumer Affairs Authority