(Nov. 11/14) The Government of Nova Scotia has introduced legislation that allows pooled pension plans. Restaurants Canada supports this initiative because it can benefit our members and their employees.
Why it’s a good idea
Pooled Registered Pension Plans provide a low-cost, regulated pension option for employers, employees and the self-employed. These plans can help small businesses attract and retain employees. The plan’s portability lets workers take it with them, or transfer to another Pooled Registered Pension Plan, if they switch employers. It’s a new option for employees to save for retirement and it encourages youth to get a valuable, early start on a pension plan. Most importantly, participation for everyone is voluntary.
Who administers it?
The plans will be administered by qualified, licensed financial institutions, which removes the administrative burden for employers and makes it affordable for small- to medium-sized businesses to offer.
Federal legislation
The federal government passed framework legislation in 2012 to enable provinces to implement provincial Pooled Registered Pension Plans (PRPPs). Nova Scotia joins Alberta, Saskatchewan, British Columbia and Quebec, which have all introduced PRPP legislation.
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