Canada’s Pooled Registered Pension Plans Act was passed by the House of Commons yesterday.
While this marks a significant step forward in making pooled registered pension plans (PRPPs) a reality, the bill still needs to be approved by the Senate before it becomes law.
As well, provinces still need to establish regulatory regimes for employees in provincially regulated industries to participate in pooled registered pension plans.
Since the legislation was first announced in December 2010, it has been the centre of much debate, with some saying it provides a much-needed retirement savings vehicle for Canadians, while others have argued that it won’t encourage retirement savings unless provisions such as mandatory enrollment are put into place.
Some—including the Ontario government—have said the federal government should instead look at increasing the Canada Pension Plan.
Read more on PRPPs at benefitscanada.com/prpp.