Financial Planning -> Pensions -> Registered Pension Plans (RPPs) -> Pooled Registered Pension Plans (PRPPs)
Pooled Registered Pension Plans (PRPPs)
On June 28, 2012, Bill C-25, An Act Relating to Pooled Registered Pension Plans and Making Related Amendments to Other Acts, received Royal Assent, so is now law. On December 14, 2012, Bill C-45, the Jobs and Growth Act, received Royal Assent, so the tax rules for PRPPs are now in effect. Also on December 14, 2012, the final set of regulations for PRPPs came into force. See links to legislation at bottom.
The objective of PRPPs is to provide low-cost defined contribution pension plans that would be available to both employees and the self-employed.
PRPPs will be administered by regulated financial institutions, which is expected to decrease 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) will make contributions which are limited by the RPP money purchase limits. Individual members, which will 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 effective January 1, 2013, as long as one of the following criteria is met:
 | employed or self-employed in the Northwest Territories, Nunavut or Yukon; |
| work in a federally regulated business or industry for an employer who chooses to participate in a PRPP; or |
| live in a province that has the required provincial standards legislation in place |
Resources
Pooled Registered Pensions Plan Act and Regulations
RPP and RRSP contribution limitsCanada Revenue Agency - The Pooled Registered Pension Plan (PRPP)
Revised: January 11, 2022