Manulife Financial Corp. (TSX:MFC) is one of the first companies in Canada to receive approval for its federal Pooled Registered Pension Plan (PRPP) product from the Canada Revenue Agency (CRA) and the Office of the Superintendent of Financial Institutions (OSFI), the insurer said Tuesday.

“Now Canadians who work for federally regulated organizations can take advantage of a workplace retirement savings plan that meets their needs,” said Marianne Harrison, SEVP and general manager, Canadian division, at Manulife. “Given that PRPP is a new product in the marketplace, we knew that customers would want to be able to set-up a plan with a very easy eApplication, which is what we offer.”

Manulife says its eApplication allows a plan to be set up in as little as 20 minutes with no paper forms to sign. Plan administration is also easy and worry-free for employers. Manulife tracks and administers plan additions and changes including employees joining or opting out, contribution rate changes and other account activities.

In September 2013, Manulife was the first Canadian company to be issued a license to be a PRPP administrator by the Office of the Superintendent of Financial Institutions (OSFI).

Next steps

Now that the final registration of Manulife’s federal PRPP product has been received from OSFI and the CRA, Manulife can finalize launch plans for the product to be offered to federally-regulated businesses across Canada, and to any business or self-employed individuals within the Yukon, Northwest Territories and Nunavut. Employees of businesses in the Yukon, Nunavut and the Northwest Territories are also eligible to participate in a PRPP, even if their employer has not yet implemented a formal plan.

Quebec recently became the first Canadian province to implement its own version of the PRPP, the Voluntary Retirement Savings Plan (VRSP), as well as legislation that makes offering a workplace savings plan mandatory for companies of a certain size over the next few years. Manulife’s VRSP launched in July and is now available.

Saskatchewan and Alberta have also passed their own Pooled Registered Pension Plans (PRPP) Act and the province of British Columbia has tabled legislation for PRPP. The next step for these provinces will be to develop the regulations necessary for the legislation to be implemented. Once other provinces release their PRPP legislation, Manulife will offer plans to their residents, businesses and self-employed individuals.

In December 2012, the Government of Canada finalized the Pooled Registered Pension Plans (PRPP) Act regulations, marking the creation of a brand-new workplace retirement savings plan – and an innovative opportunity for Canadians who currently do not have access to a retirement savings vehicle through their employer.