The government of Canada has pre-published regulatory proposals to address provisions of the Pooled Registered Pension Plans Act (Bill C-25), according to Minister of State (Finance) Ted Menzies.
“These proposed regulations take us one step closer to a new large-scale and low-cost defined contribution pension option for millions of Canadians currently without access to a workplace pension plan. This includes employers, employees and the self-employed,” said Menzies.
The proposed regulations will address provisions of the Pooled Registered Pension Plans Act respecting:
•the licensing conditions for a potential administrator of a Pooled Registered Pension Plan (PRPP)
•the management and investment of funds in members’ accounts
•details with respect to the investment options offered to members
•criteria against which the requirement to provide low-cost PRPPs can be assessed
•conditions under which a PRPP member is allowed to set his or her contribution rate to zero per cent
•information that plan administrators must disclose to plan members, employers and the Superintendent of Financial Institutions.
“The development of these regulatory proposals has benefitted from an extensive review process and collaboration with provincial-territorial officials,” said Menzies. “Associations representing small businesses, employees, pension funds, financial institutions and Canadians from across the country have also provided their views for consideration throughout the development of the PRPP framework.”
The proposed regulations were pre-published in the Canada Gazette on August 11 for a 30-day public comment period, prior to final consideration by the government. A second package of regulations under the PRPP Act will follow at the earliest opportunity, said Menzies.
PRPPs will be available across Canada once federal tax legislation is passed and the provinces implement their PRPP legislation.
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