An overview of the Pooled Registered Pension Plan (PRPP)
Use this summary to learn more about the Pooled Registered Pension Plan (PRPP), responsibilities you may have as an employer and other important facts.
This information is based on Bill C-25, the Pooled Registered Pension Plans (PRPPs) Act, which was passed by the Federal Government in June 2012. While each province will have discretion in determining how its PRPP will be structured should each province choose to adopt one, the Act provides a useful overview of the features of PRPPs, which are summarized in the table below. The descriptions below may differ for the provinces depending upon what each chooses to do.
What is a PRPP?
How do I know if I must set up a PRPP for my employees?
Which employees can participate?
Do employers have to contribute?
What are the tax advantages of a PRPP to an employee?
How are employees enrolled in the PRPP?
Do employees have to stay in the PRPP?
How much can employees contribute each year?
Can the employee withdraw money from the plan?
I already offer a group RRSP to my employees. Do I have to establish a PRPP?
I already offer a retirement savings plan in my company, but I just don't make it available to everyone. Do I have to establish a PRPP?