Federal minister advocates for PRPPs to be introduced in every province

May 28, 2014

Canada’s Minister of State (Finance) Kevin Sorenson gave Pooled Registered Pension Plans (PRPP) a ringing endorsement recently, indicating his belief that PRPPs would significantly help small-business owners in this country, as well as their employees who don't currently have access to workplace savings plans.

He also applauded British Columbia (B.C.), Alberta, Saskatchewan and Quebec for proceeding with the PRPP concept, and he urged Ontario to take action soon for the benefit of those across the province without workplace pensions.

Minister Sorenson’s position on PRPPs is a clear sign that there is great political appetite to see the plan implemented in every province and provide millions of hard-wording Canadians access to a means to save for their retirement.

The federal government has approved PRPPs, making the plan available to federally regulated businesses across Canada, as well as businesses and self-employed individuals in the Northwest Territories, Nunavut and the Yukon. Quebec is now preparing to launch its own version of the PRPP, called the Voluntary Retirement Savings Plan (VRSP), on July 1, 2014. Alberta and Saskatchewan have also passed PRPP legislation and are now in the process of drafting plan regulations. B.C. has tabled draft PRPP legislation for provincial consideration.

Minister Sorenson made these comments while launching a consultation on a proposed federal framework for Target Benefit Plans (TBPs). The voluntary framework, which would allow for conversion of defined benefit or defined contribution pension plans, would be available to federally-regulated private sector companies and Crown corporations.