In its 2013 Ontario Budget, the Ontario government said it is in consultations to determine how pooled registered pension plans (PRPPs) should be implemented, as a retirement savings option, before introducing legislation. For example, it wants to ensure members are adequately protected and low-cost objectives are met.
“Pension coverage has been declining in recent years and many defined benefit pension plans for private sector employees have been closed to new entrants. Increasingly, there are calls for new, more flexible retirement savings options that would enhance coverage, improve retirement income security and enable plan sponsors to better manage plan costs,” it said.
The federal government has already implemented the federal legislative changes necessary to support the introduction of PRPPs. In April, both Alberta and Saskatchewan introduced legislation to introduce PRPPs to the provinces, while similar plans in British Columbia were put on hold when the province's legislative assembly adjourned March 14 — B.C. is holding an election May 14. Quebec has also signalled its intention to pass similar legislation.
© Copyright Canadian HR Reporter, Thomson Reuters Canada Limited. All rights reserved.