Manulife Financial has received approval for its federal Pooled Registered Pension Plan (PRPP) product.
PRPPs are meant to provide small business owners and their employees with access to large-scale, low cost pension plans. The federal legislation governing PRPPs came into effect with the passage of the Jobs and Growth Act on December 14, 2012.
Having received formal approval from the Canada Revenue Agency and the Office of the Superintendent of Financial Institutions in Canada on September 26, Manulife is now able to sell PRPPs to federally regulated employers. These are companies that are involved in federally regulated sectors such as banking, shipping, air and railway transportation, telephone and radio communications, feed or seed mills, and the protection of fisheries. Many First Nation activities, most federal Crown corporations, and private businesses necessary to the operation of a federal act also fall under federal jurisdiction.
Manulife is offering its new product through an electronic application, which allows employers to set up a plan in as little as twenty minutes. "Plan administration is also easy and worry-free for employers," says the insurer. "Manulife tracks and administers plan additions and changes including employees joining or opting out, contribution rate changes and other account activities."