Archived - Harper Government Moves to Streamline Administration and Supervision of Pooled Registered Pension Plans
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Regulatory harmonization will result in lower costs and greater access to new private pension option
July 15, 2015 – Ottawa, Ontario – Department of Finance
Minister of State (Finance) Kevin Sorenson welcomed the beginning of the public comment period for an agreement that will streamline the oversight of Pooled Registered Pension Plans (PRPPs).
The agreement would ensure that plan administrators, wherever they are located, only need to deal with one supervisor, the federal Office of the Superintendent of Financial Institutions (OSFI), for administrator licencing, plan registration and ongoing plan supervision. This would remove the need to pay multiple licencing and registration fees, thus lowering costs and removing red tape. Participation in the agreement would be open to any province that has adopted PRPP legislation similar to the federal Pooled Registered Pension Plan Act.
The agreement is being published for a 45-day public comment period. Current and potential PRPP administrators are being consulted to ensure that their views are taken into consideration before the agreement is finalized. Any individuals or organizations interested in submitting their views on the proposed agreement may do so via email at: firstname.lastname@example.org.
- PRPPs are large-scale, broad-based, voluntary pension arrangements available to self-employed individuals and employees with or without a participating employer.
- They will be a low-cost retirement savings option. By pooling pension savings, the cost of administering the pension funds will be spread over a larger group of people, allowing plan members to benefit from lower investment management costs.
- Most of the administrative and legal burdens associated with a PRPP will be borne by a qualified, licensed, third-party organization.
- PRPPs are designed to be straightforward in order to benefit small businesses across Canada. They will fit seamlessly into the system of tax rules and contribution limits for existing Registered Pension Plans and Registered Retirement Savings Plans.
“Today’s proposed agreement is yet another major step forward in making an attractive new voluntary retirement savings option available to those millions of Canadians—roughly 60 per cent—who do not have access to a workplace pension plan. It will support a high level of regulatory harmonization across jurisdictions, and will be instrumental in streamlining administration, increasing the scale and portability of PRPPs and achieving low costs.”
- Kevin Sorenson, Minister of State (Finance)
Director of Communications
Office of the Minister of State (Finance)
Department of Finance