Saskatchewan has introduced legislation to allow the creation of pooled registered pension plans (PRPPs) as a new retirement savings option in that province.
The provincial government Monday introduced new legislation, the Pooled Registered Pension Plans Act, along with amendments to The Saskatchewan Pension Plan Act, which will enable the trustees of the Saskatchewan Pension Plan (SPP) to apply to be a licensed PRPP provider.
Federal legislation passed in December 2012, as part of the governments’ plan to introduce PRPPs as a new pension option, but the provinces must create their own enabling laws too. Saskatchewan now joins B.C. and Quebec with introduced similar legislation.
“These legislative changes will provide new and affordable pension options to employees of participating employers and the self-employed,” said the province’s justice minister and attorney general, Gordon Wyant.
Under the legislation proposed in Saskatchewan, employer enrollment is optional, but if an employer chooses to offer a PRPP to its workers, the employees will be automatically enrolled (although they will also have the ability to opt out). Employers will not be obligated to make matching contributions either. For workers that don’t have access through a PRPP, they will be able to deal directly with a PRPP administrator to open an account, similar to opening an RRSP.
The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) will be responsible for overseeing the PRPP legislation and will develop further regulations that are required before this legislation is proclaimed.
Tim Calibaba, chair of the board of trustees of the SPP, also welcomed the government’s move. “The Saskatchewan Pension Plan was created in 1986 to provide a unique way to save for retirement for people with little or no access to employer-sponsored pension plans or other retirement savings arrangements. These changes help us provide even more choice in offering ways Saskatchewan workers can save for their retirement,” he said.