Manitoba is a step closer to carrying out its plan to offer pooled registered pension plans.

Yesterday, Finance Minister Cameron Friesen said enabling legislation and regulations came into effect Aug. 1.

“Many employees and self-employed Manitobans do not have access to a workplace pension,” said Friesen. “These pooled registered pension plans are designed to help people defer their income and save for retirement, while offering investment and savings opportunities at lower administration costs.” 

Read: PRPPs continue to languish as provinces vary in enthusiasm for new option

The next step, Friesen noted, is for Manitoba to sign multilateral agreements with the federal government and other provinces, including Quebec, Saskatchewan, British Columbia, Nova Scotia and Ontario, this fall. Once all parties sign, licensed providers can starting offering pooled plans in the province.

“We commend the provincial government for taking action to make this important retirement savings option available,” said Loren Remillard, president and chief executive officer at the Winnipeg Chamber of Commerce. “Most of our 2,100 members are small companies, and enabling PRPPs makes it much easier for them to offer employees the opportunity to participate in a pension plan.”

Read: Manitoba submits PRPP bill to boost workplace retirement savings

The government of Manitoba first expressed an interest in pooled registered pension plans last fall when it made a reference to them in its throne speech and introduced legislation to allow them to the province.

Copyright © 2017 Transcontinental Media G.P. Originally published on benefitscanada.com

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