(TORONTO, ON) – Ontario is moving forward with its plan to strengthen retirement income security for all. The province has passed the Pooled Registered Pension Plans Act, 2015, which creates a framework for Ontario businesses to offer Pooled Registered Pension Plans (PRPPs) to their employees, as well as make PRPPs available to the self-employed.
PRPPs offer a voluntary, low-cost, professionally managed, and tax-assisted option to increase retirement savings. Fewer than 35 per cent of workers, and only 28 per cent of private sector employees, in Ontario have a workplace pension plan. They will also move with an employee throughout their career.
Studies show that many people are not saving enough to maintain a similar living standard in retirement.
Participation in PRPPs is voluntary for employers. Where an employer elects to offer a PRPP to its employees, employees 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.
Ontario joins five other provinces that have passed legislation to implement PRPPs: British Columbia, Alberta, Saskatchewan, Quebec and Nova Scotia.