The government of Nova Scotia Wednesday announced legislative changes to provide access to Pooled Registered Pension Plans (PRPPs) in the province.
“All Nova Scotians deserve a pension option that allows them to retire with security and comfort, and Pooled Registered Pension Plans help achieve that,” said Diana Whalen, Finance and Treasury Board Minister, in a release. “This is an innovative way for small businesses to provide pension options to their employees, filling a need that was not available previously.
“These will also be available to employees without a participating employer, and, the self-employed.”
Only about 40 per cent of Nova Scotians have a pension and less than 20 per cent of working Nova Scotians contribute to a Registered Retirement Savings Plan (RRSP).
PRPPs provide a low-cost, regulated pension option for employers, employees and the self-employed. They have portability features that will help workers take their plan with them or transfer to another PRPP if they switch employers, which helps young, mobile employees get a valuable, early start on a pension.
Participation for everyone is voluntary.
The plans will be administered by qualified, licensed financial institutions, removing the administrative burden for employers and making them affordable for small to medium-sized employers to offer.
The federal government passed legislation to enable PRPPs for federally regulated industries in 2012. Federal regulations are now in place, and five insurance companies have been licensed to provide the plans.