Ontario's Pooled Registered Pension Plans Act and its accompanying regulations came into force on November 8.
Pooled Registered Pension Plans (PRPPs) offer plan members the economies of scale that traditional defined contribution plans offer, namely lower administrative and investment management fees, but employers are not required to pay into them. Self-employed people may also join a plan by approaching an administrator directly.
Ontario is the most recent province to introduce legislation for PRPPs, and in so doing joins British Columbia, Saskatchewan, Quebec, Nova Scotia and the federal government.
The insurance industry was quick to welcome the news that the legislation had come into force. "These low-cost, efficient solutions complement the recent proposal to expand the Canada Pension Plan, and provide precisely what millions of working Canadians need - a simple, viable way to build a comfortable retirement," says Frank Swedlove, president of the Canadian Life and Health Insurance Association (CLHIA). "We encourage the remaining provinces to quickly move to make PRPPs available to their citizens."