BC unveils new pension option
New legislation introduced by the B.C. government will create an important option for people to save for retirement and provide an additional financial safety net for the approximately two-thirds of B.C. workers who do not have access to group pension plans, Finance Minister Michael de Jong said today.
Following on the heels of similar legislation enacted by the federal government in December, de Jong introduced the Pooled Registered Pension Plans Act, which will make all workers in B.C. eligible to enrol in defined-contribution pension plans.
The bill is part of a national effort to make well-regulated, low-cost pension plans available to millions of Canadians who do not have occupational pension plans.
Pooled Registered Pension Plans (PRPPs) will be managed by licensed financial institutions, reducing administrative burdens for employers and providing tax advantages to employers that are not available under alternative models such as group RRSPs.