Tax memo: Pooled Registered Pension Plans

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A new retirement savings vehicle

On November 17, 2011 the federal government introduced legislation implementing a federal pooled registered pension plan (PRPP) – a voluntary savings plan aimed at individuals who do not have access to employer-sponsored pension plans. Because PRPPs will be administered by regulated financial institutions, the cost and complexity for small employers to offer their employees a retirement savings plan will be reduced.

PRPPs are intended for employees of small and medium-sized employers that do not currently offer their employees a registered pension plan. The legislation also allows self-employed individuals to be members of PRPPs; however, it is unclear how the rules will apply to them.

The provinces and territories must introduce their own enabling legislation to implement provincial and territorial PRPPs.

Read our tax memo to learn more about PRPPs.