Alberta has introduced new legislation to implement pooled registered pension plans (PRPPs) in the province.
PRPPs will give members access to the benefits of being a part of a large fund at a low cost, the province said Friday.
“We’ve introduced this legislation so that all working Albertans — including those who work for small companies or are self-employed — have more choices when it comes to retirement savings,” said Kyle Fawcett, Associate Minister of Finance, in a news release.
He noted that only one in six Albertans working in the private sector have access to an employee pension pland.
Bill 18, the Pooled Registered Pension Plans Act, will allow employers, employees and the self-employed to access pooled registered pension plans.
These large, defined contribution plans will be professionally managed by plan providers, such as banks and insurance companies, and will be open to any employer or to individuals.
The Alberta government says joining a PRPP will allow members to access the benefits of being part of a large fund, while allowing them to move their benefits from job to job.
The federal government passed legislation passed in December 2012, as part of its plan to introduce PRPPs as a new pension option, but the provinces must create their own enabling laws, too. Saskatchewan, B.C. and Quebec have introduced similar legislation.