Financial Planning -> Pensions -> Registered Pension Plans (RPPs) -> Pooled Registered Pension Plans (PRPPs)
Pooled Registered Pension Plans (PRPPs)
PRPPs became available on January 1, 2013. See links to the legislation at the bottom of the page.
The objective of PRPPs is to provide low-cost defined contribution pension plans that are available to both employees and the self-employed.
PRPPs are administered by regulated financial institutions, which hopefully decreases the cost and complexity for small employers in setting up a pension plan for their employees.
PRPPs are subject to most of the existing rules which apply to defined contribution RPPs (known as money purchase RPPs in the Income Tax Act). Employers and employees (employed members) make contributions which are limited by the RPP money purchase limits. Individual members, which include self-employed persons and employees of an employer that does not offer PRPPs, will make contributions that are limited by the RRSP contribution limits.
Those with a valid Canadian social insurance number (SIN) can participate in a PRPP as long as one of the following criteria is met:
Pooled Registered Pensions Plan Act and RegulationsRPP and RRSP contribution limits
Canada Revenue Agency - The Pooled Registered Pension Plan (PRPP)
Revised: July 07, 2022
Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved. See Reproduction of information from TaxTips.ca