Pension Plans For SMEs – NS Introduces Pooled Retirement Pension Plan Law

On October 15, 2014, the Nova Scotia government introduced legislation that will, if passed into law, permit Pooled Registered Retirement Pension Plans (or "PRPPs") in NS:

Pooled Registered Retirement Pension Plans. PRPPs are intended to give employees and self-employed people who do not have access to a traditional workplace pension an accessible, low cost retirement option. PRPPs pool the assets of individual members so they can offer more investment and savings opportunities at lower administrative costs. PRPPs are also portable so they can move with members throughout their careers.

SMEs. PRPPs are an attractive option for small to medium-sized employers wanting to provide employees with a pension plan, but avoid the administrative complexity and potential liability related to traditional pension plans. Participation is voluntary and employer contributions to PRPPs are not mandatory.