Draft Rules Regarding Federal PRPPs

At the end of last year, the Federal Government introduced the Pooled Registered Pension Plans Act (the "PRPP Act"), for the establishment and administration of Pooled Registered Pension Plans (PRPPs) and proposed amendments to the Income Tax Act to accommodate the creation of PRPPs. The PRPP Act and the proposed tax amendments are not yet in effect.

The "What" and "Why" of PRPPs

PRPPs are a proposed new voluntary retirement vehicle that will allow unrelated employers to participate in a plan that pools their assets and is administered by a third party administrator who assumes most of the duties of administering the PRPP. The PRPP Act will apply to federally regulated employers, the self-employed and employers in the Yukon, the Northwest Territories or Nunavut.