On November 14, 2017, Bill 22, also known as the proposed Pooled
Registered Pension Plan Act (the "NB Act"), was
introduced in the New Brunswick Legislature. If passed, New
Brunswick would join other provinces, including Nova Scotia, in enacting legislation similar
to the Federal Act bearing the same name which was introduced in
2012. Like the Federal Act, which covers federally regulated
employees, the NB Act would potentially provide access to Pooled
Registered Pension Plans ("PRPPs") to New Brunswick
employees.
In general, PRPPs are seen as a means of filling in gaps for
employers that do not provide employment pension plans, by pooling
contributions and distributing the associated costs across sectors.
The regulatory framework enables third-party companies to seek
licenses to provide PRPPs to multiple employers with investment and
administrative management of the funds. Employer participation is
voluntary and is open to smaller employers and the
self-employed.
