Ottawa, December 14, 2012
The Honourable Ted Menzies, Minister of State (Finance), today announced the coming into force of the second and final tranche of regulatory proposals to address provisions of the Pooled Registered Pension Plans Act. These regulations were pre-published in the Canada Gazette on October 27, 2012 for a 15-day public comment period, prior to final approval by the Government.
“This is the last package of regulations needed to complete the federal Pooled Registered Pension Plan (PRPP) framework, and it marks a significant milestone for Canada’s retirement income system,” said Minister Menzies. “With the federal framework now fully in force, our Government's efforts can serve as a model for provinces to implement their respective sides of the framework. I encourage them to do so, so PRPPs will become available to the millions of Canadians without access to a workplace pension option.”
The federal regulatory regime, which comes into force today, addresses provisions of the PRPP Act respecting:
“I would like to extend my sincerest thanks to the provincial-territorial officials who collaborated in the extensive review process, and who helped make the development of the federal PRPP framework possible,” said Minister Menzies. “I also extend my thanks to Canadians from across the country, including all the associations representing small businesses, employees, pension funds and financial institutions, who also took part in our consultations and helped ensure a sound regulatory framework for PRPPs.”
In addition, with the passage of the Jobs and Growth Act, 2012, which received Royal Assent today, the income tax rules for PRPPs are now in force. The tax rules for PRPPs will apply to both federally and provincially regulated PRPPs.
Office of the Minister of State (Finance)
Department of Finance