What are PRPPs?
Pooled Registered Pension Plans (PRPPs) are an affordable and easy-to-administer retirement income tool for individuals who do not have access to a workplace pension or retirement savings plan. While individuals contribute to the PRPP, employers have the choice to offer employer contributions. The members’ funds are pooled together resulting in lower management and administration costs. PRPPs can be a more affordable option than other workplace retirement plans.
Who can participate?
Starting November 15, 2017, Manitoba employers can choose to offer a PRPP to their employees. When employers set up a PRPP, the employer picks the PRPP administrator, enrolls employees, and remits contributions. Employer contributions are optional. Employers can contact the PRPP administrators listed below to find a PRPP that fits their business.
Self-employed individuals and employees where the employer is not participating in a PRPP can approach a PRPP administrator to enroll in a PRPP.
How do they work?
Currently, four companies offer and administer PRPPs. Visit their websites to compare the programs and find the best fit for your company.
- Great West Life Assurance Company
- The Manufacturers Life Insurance Company
- Sun Life Financial
- iA Financial Group
Unless an employee gives the employer written direction to contribute more, the maximum contributions by an employee and an employer are based on the employee’s RRSP contribution limit as cited on the personal income tax notice of assessment. All contributions – both employee and employer – are counted against the individual’s RRSP contribution room.
Additional details are available, including:
- Manitoba Office of the Superintendent - Pension Commission
- Office of the Superintendent of Financial Institutions (OSFI)
- Canada Revenue Agency (CRA)
- CRA Q&As for Employers
- CRA Q&As for Employees and Self-Employed
CFIB encourages all employees and self-employed Manitobans to study this new retirement savings opportunity.
If you want to discuss PRPPs with CFIB, contact our team at 1-888-234-2232 or [email protected].