On June 29, 2012, legislation for Pooled Registered Pension Plans (PRPPs) received royal assent. PRPPs will be an excellent addition to the retirement savings options for small business owners and their employees. This legislation implements the federal framework for a new pension option for the millions of Canadians currently without access to a workplace pension plan.
Regulations have been drafted and will soon be published to address provisions of An Act relating to pooled registered pension plans and making related amendments to other Acts (formerly Bill C-25). PRPPs will be available across Canada once each province pass their enabling legislation.
On June 12, 2012, Quebec became the first province to introduce legislation to move forward with PRPPs. Individuals and self-employed in Quebec may become members of a voluntary retirement savings plan to the extent that they are allowed to contribute to a registered retirement savings plan under the fiscal rules provided by the federal Income Tax Act. Bill 80, An Act respecting voluntary retirement savings plans, received first reading in the Quebec legislature.
I won't go into detail since we covered this topic in a previous Slaw post.