Residents of Alberta will soon have the ability to invest in pooled registered pension plans (PRPPs).
The provincial government has introduced Bill 18, the Pooled Registered Pension Plans Act, which will allow employers, employees and the self-employed to access PRPPs.
“Currently, only one in six Albertans working in the private sector participates in an employee pension plan,” says Associate Minister of Finance Kyle Fawcett. “We’ve introduced this legislation so that all working Albertans—including those who work for small companies or are self-employed—have more choices when it comes to retirement savings.”
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The Canadian life and health insurance industry congratulated the Alberta government for introducing the legislation.
“The biggest winners are the over a million Albertans working in the private sector who do not currently have access to a pension plan at their workplace,” says Frank Swedlove, president of the Canadian Life and Health Insurance Association. “Small and medium-size companies also gain as they will be able to compete on a much more level playing field with their big business counterparts in offering pension plans to prospective employees.”