PRPP progress felt in several provinces
Apr. 7, 2014
The push for Pooled Registered Pension Plans (PRPPs) is picking up across the country. A number of provinces have either passed or are on their way to passing legislation that will see this brand-new, low-cost workplace savings plan, designed especially for small to medium-sized businesses, come into effect.
Both Alberta and Saskatchewan are working toward finalizing their PRPP regulations and selecting their launch dates. Once those details are in place, business owners in both provinces will have access to the new PRPP and the ability to provide their employees with a means to save for their retirement.
British Columbia (B.C.) also made PRPP intentions known recently, with the provincial government re-tabling legislation for consideration. If the legislation is passed, the B.C. PRPP will be an option for millions of workers across the province who don’t have access to a workplace savings plan.
Meanwhile, Quebec is now preparing to implement its own version of the PRPP, called the Voluntary Retirement Savings Plan (VRSP), on July 1. The Quebec government has made implementing a workplace savings plan mandatory for businesses with five or more eligible employees over a phased time period – and the VRSP is a great choice for those companies.
Momentum is building. The provinces are recognizing that the PRPP makes perfect sense and will help so many Canadians to save for the future – with little cost and effort required of business owners.
In fact, business owners can benefit just as much from the PRPP as their employees. Offering a workplace savings plan can lead to greater employee attraction and retention that comes from helping to alleviate any worries workers may have around future financial security for themselves and their families. This can, in turn, lead to greater employee loyalty and productivity.
As well, PRPPs can offer significant tax advantages for employers and employees.
Check out www.prpp.com for the latest news on PRPPs across Canada, as well as more information on this innovative new product.