The federal government has prepublished regulatory proposals to address provisions of the Pooled Registered Pension Plans Act (Bill C-25), says Ted Menzies, Minister of State (Finance).
“These proposed regulations take us one step closer to a new large-scale and low-cost defined contribution pension option for millions of Canadians currently without access to a workplace pension plan, he says. “This includes employers, employees and the self-employed.”
Filling the PRPP holes
Will the PRPP matter?The proposed regulations address provisions of the PRPP Act, respecting:
- the licensing conditions for a potential administrator of a pooled registered pension plan (PRPP);
- the management and investment of funds in members’ accounts;
- details with respect to the investment options offered to members;
- criteria against which the requirement to provide low-cost PRPPs can be assessed;
- conditions under which a PRPP member is allowed to set his or her contribution rate to 0%; and
- information that plan administrators must disclose to plan members, employers and the Superintendent of Financial Institutions.
He adds, “The development of these proposals has benefited from an extensive review process and collaboration with provincial-territorial officials.”
The proposed regulations were pre-published in the Canada Gazette on August 11, for a 30-day public comment period. A second package of regulations under the PRPP Act will follow at the earliest opportunity.
PRPPs will be available across Canada once federal tax legislation is passed and the provinces implement their legislation.