Pooled Registered Pension Plans (PRPPs)

Pooled Registered Pension Plans (PRPPs)

A PRPP is a type of pension plan that is similar to a defined contribution plan; however, employer contributions are not mandatory and a PRPP Administrator must be a Canadian corporation. A PRPP pools contributions from members of many different employers together to achieve lower investment and administration costs.

For information about PRPPs select from the options below.



The PRPP Agreement and Regulations / Supervision of PRPPs

In 2016, the Government of Saskatchewan entered into the Multilateral Agreement Respecting Pooled Registered Pension Plans and Voluntary Retirement Savings Plans (the PRPP Agreement) with the Governments of Canada, Quebec, British Columbia, and Nova Scotia. The Government of Ontario entered into the PRPP Agreement in 2017. Effective November 15, 2017, the Government of Manitoba entered into the PRPP Agreement. The PRPP Agreement provides for the regulation and supervision of PRPPs across Canada, and addresses how conflicts are to be resolved when there are differences between jurisdictions’ PRPP legislation.

The PRPP Agreement provides that corporations that have been granted PRPP administrators’ licences through the federal Office of the Superintendent of Financial Institutions (OSFI) or Quebec will be able to offer PRPPs in the provinces which have PRPP legislation inforce, including Saskatchewan, without the need to register the plans provincially. Also, a federally-licensed PRPP administrator that registers a PRPP under federal PRPP legislation is exempt from the requirement to register that PRPP under provincial legislation. OSFI is responsible for the regulation and supervision of all PRPPs that provide benefits to Saskatchewan residents.

For information about how to become a licensed PRPP administrator, registering a PRPP, or amending a PRPP to allow for Saskatchewan participants, contact OSFI.


Impact of PRPPs

When the PRPP Act and PRPP Regulations came into force, they had immediate impact on financial institutions and pension plan administrators. Some of the important details include:

Impact on Financial Institutions

  • Contracts for locked-in retirement accounts (LIRAs) and prescribed registered retirement income funds (pRRIFs) will need to be amended to ensure compliance with the The Pension Benefits Act, 1992 and The Pension Benefits Regulations, 1993, specifically sections 29 and 29.1 of the Regulations.
  • Financial Institutions may wish to establish contracts for the newly-created products found in the PRPP Act and PRPP Regulations, including pooled retirement savings account contracts (PRSAs) and pooled retirement income account contracts (PRIAs).

Impact on Pension Plan Administrators

  • Pension plans may, but are not required to, allow plan members the option to transfer pension benefits to PRPPs on termination of membership, retirement, death, or plan termination. In the event that transfer to a PRPP is permitted, pension plan contracts will have to be amended.

For more information on how PRPPs work visit Office of the Superintendent of Financial Institutions.

For questions related to Saskatchewan LIRAs, pRRIFs, PRSAs, PRIAs, and pension plans in general contact the FCAA directly.


Guides/Forms and FAQs

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