Ontario has passed the Pooled Registered Pension Plans Act, 2015, which creates a framework for Ontario businesses to offer pooled registered pension plans (PRPPs) to employees, as well as make PRPPs available to the self-employed.
PRPPs offer a voluntary, low-cost, tax-assisted option to increase retirement savings, according to the Ministry of Finance.
Participation in PRPPs is voluntary for employers. If an employer elects to offer a PRPP to employees, they would be automatically enrolled into the PRPP but would have the right to opt out of the plan within 60 days of receiving notice of membership.
PRPPs are low-cost and professionally managed, said the government, and they can move with an employee throughout her career.
Ontario joins five other provinces that have passed legislation to implement PRPPs: British Columbia, Alberta, Saskatchewan, Quebec and Nova Scotia.