Federal Pooled Registered Pension Plan ("PRPP") Legislation Introduced
On November 17, 2011, the Minister of State (Finance) and the Minister of Industry announced the introduction of Bill C-25, An Act relating to pooled registered pension plans and making related amendments to other Acts, new legislation implementing the framework for the federal component of the PRPP.
The government will shortly release draft tax rules for public commentary, which will apply to both federally and provincially regulated PRPPs. Provincial enabling legislation has not yet been introduced; the new Ontario government will convene on November 21, 2011.
As announced in Budget 2011, the release of the PRPP legislation follows a joint federal-provincial initiative to move forward with a new type of broad-based privately administered pension arrangement to bridge existing gaps in the Canadian retirement system. Notably, the PRPP is intended to provide small business owners and their employees with access to large-scale, low-cost, professionally administered pension plans.
We are in the process of reviewing the legislation, and a detailed FTR Now outlining its particulars will be posted shortly on our website.