Business owner  |  Employee

Manulife's PRPP is advantageous for business owners looking for a low-cost, worry-free workplace retirement savings plan. Learn how the PRPP can help you be one of Canada's top employers of choice.

Cost-effective workplace savings plan makes good business sense

It's often the benefits offered to employees that make one employer stand out from another. One benefit many employees need and value is future financial security. Offering a Pooled Registered Pension Plan (PRPP) can provide peace of mind for your employees who choose to participate in the plan, and their families.


Stay ahead of your competition

Offering a PRPP shows your employees you care about their financial well-being – which can lead to improved morale and productivity. In fact, more than 70 per cent of business owners who participated in Manulife's 2011 Small Business Research Study agreed "taking care of employees makes employees work harder for the company."

Advantages of PRPPs over traditional workplace pension plans

  • The application and set-up process will be fast and easy.
  • Administrative tasks of a traditional defined contribution pension plan, like completing an annual information return, will not be the employer's responsibility.
  • Employers choose if and how much to contribute to a PRPP.

If any employer chooses to contribute to the PRPP, these tax benefits are available:

  • Employer contributions will not be subject to payroll taxes.
  • Employer contributions are a deductible salary expense and may therefore be deducted from income for tax purposes.

How easy is it for me as an employer?

    The PRPP is not like other pension plans. The role of an employer will be minimal and much easier than traditional pension plans.

  • Simply notify your employees 30 days before the contract is signed of your intention to establish a PRPP.
  • In your regular payroll process, deduct PRPP contributions from employee's earnings and send the funds to the administrator.
  • Share employee names and addresses with the administrator as employees become eligible.
  • Let the administrator know if you have an employee leave your company for any reason.