New Brunswick is looking to become the latest province to allow workers to save for retirement through pooled registered pension plans (PRPPs).
The provincial government announced on Tuesday that it's introducing legislation that would enable small companies and self-employed workers to utilize PRPPs as a retirement savings vehicle. The proposed legislation is based on model legislation drafted by the federal government to facilitate the introduction of PRPPs in various provinces.
Similar legislation has already been introduced in British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, Ontario and Nova Scotia, along with the federal government. If the legislation is passed, New Brunswick says that it would join the other provinces in signing an agreement giving the federal Office of the Superintendent of Financial Institutions (OSFI) regulatory responsibility for PRPPs in the province.
"Many self-employed New Brunswickers and employees of small and medium-sized businesses do not have access to a workplace pension," says Rick Hancox, chief executive officer of the Financial and Consumer Services Commission (FCNB), the provincial regulator, which also helped develop the proposed legislation, in a statement. "As a result, many of these New Brunswickers may see their standard of living drop significantly during their retirement years. PRPPs will make retirement saving accessible for every working New Brunswicker."
"This act will allow for an additional instrument to New Brunswickers for pension planning that is low-cost to both employees and employers," adds New Brunnswick Finance Minister Cathy Rogers.
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