Ontario has passed the Pooled Registered Pension Plans (PRPP) Act, 2015.

It creates a framework for Ontario businesses to offer PRPPs to their employees, as well as make PRPPs available to the self-employed.

Read: CUPE Ontario blasts PRPPs

Implementing PRPPs is one initiative under the government’s plan to strengthen retirement income security. Other initiatives include the creation of the Ontario Retirement Pension Plan (ORPP) and measures to help Ontarians obtain sound financial advice in managing retirement savings.

Participation in PRPPs is voluntary for employers. Where an employer elects to offer a PRPP to its employees, employees would be automatically enrolled into the PRPP, but would have the right to opt out of the plan within 60 days of receiving notice of membership.

Read: Industry shows support for PRPPs

Ontario joins five other provinces that have passed legislation to implement PRPPs: British Columbia, Alberta, Saskatchewan, Quebec and Nova Scotia.

Also read:

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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