The federal government introduced pooled registered pension plans (PRPPs) because legislators were worried about the low levels of pension plan coverage in the private sector. Recent data from the Office of the Superintendent of Financial Institutions (OSFI) support those concerns.
Quebec is the only province to have mirrored the federal government’s move towards pooled registered pension plans (PPRPs). Immediately following the latest government election, the Quebec version was in question. But the new government party has announced plans to move ahead with the alternative savings system.
When the federal government introduced legislation to create pooled registered pension plans (PRPPs) for federally regulated employees in November 2011, it confidently predicted that the provinces would pass their own legislation making PRPPs available to provincially regulated employees. But so far, reaction to the PRPPs from provincial governments has been lukewarm at best.
When the federal government introduced legislation to create pooled registered pension plans (PRPPs) in November 2011, it proudly boasted that PRPPs would provide Canadians with an “accessible, straightforward and administratively low-cost retirement savings option.” The intent of the voluntary retirement savings vehicle (which holds assets from multiple participating employers and from self-employed individuals who choose to participate) is to help those in the private sector with no employer-sponsored pension plan to save for retirement.