As a result of The Pooled Registered Pension Plans (Manitoba) Act and regulations coming into force on Aug. 1, the Manitoba government is moving forward to make another retirement savings option available to Manitobans.
“Many employees and self-employed Manitobans do not have access to a workplace pension,” said Finance Minister Cameron Friesen. “These pooled registered pension plans are designed to help people defer their income and save for retirement, while offering investment and savings opportunities at lower administration costs.”
Pooled registered pension plans (PRPPs) are defined contribution-style plans set up and administered by federally-licensed providers. The Manitoba legislation and regulations set out rules and processes to establish these plans in the province. The final step is signing a multilateral agreement with the federal government and several other provinces, including Quebec, Saskatchewan, British Columbia, Nova Scotia and Ontario this fall. Once Manitoba signs onto the multilateral agreement, licensed providers will be able to offer PRPPs in the province.
“The Winnipeg Chamber has advocated for PRPPs in Manitoba for a long time and it is an important income security measure championed in our 2016 Manitoba BOLD platform,” said Loren Remillard, president and chief executive officer, Winnipeg Chamber of Commerce. “We commend the provincial government for taking action to make this important retirement savings option available. Most of our 2,100 members are small companies and enabling PRPPs makes it much easier for them to offer employees the opportunity to participate in a pension plan.”
“I believe that pooled registered retirement plans will provide Manitobans who are self-employed or do not have a pension with another opportunity to save for their retirement,” said Tom Farrell, president, Manitoba Association of Seniors Centres. “As a senior citizen, I am well aware of the need to have a secure income capable of addressing ongoing changes in our lifestyles. This nationally-regulated plan will help provide for a more secure future.”
“In the hotel industry, our greatest asset is our people,” said Scott Jocelyn, president and chief executive officer, Manitoba Hotel Association. “While some hotels already offer pension plans for their employees, pooled registered pension plans may be a great fit for those properties that do not. We welcome PRPPs as a new tool to help hotels in Manitoba attract and retain good employees.”
Pooled registered pension plans were developed through extensive consultations with pension industry stakeholders.
“Manitoba looks forward to signing onto a multilateral agreement and will encourage all licensed PRPP providers to make these new and innovative plans available here as soon as possible,” said Friesen.