Details
- Full Title
- An Act relating to pooled registered pension plans and making related amendments to other Acts
- First Reading
- November 17, 2011, Parliament 41, Session 1
- Type
- House Government Bill
- Full Content
- https://www.parl.ca/legisinfo/en/bill/41-1/c-25
Summary
Bill C-25, also known as the Pooled Registered Pension Plans Act, creates a new type of retirement savings plan for employees and self-employed individuals. These plans, called Pooled Registered Pension Plans (PRPPs), pool money from many people to lower investment management and administration costs. The goal is to make it easier and cheaper for Canadians to save for retirement.
The bill lets the federal government make deals with provinces to manage these plans together. It also sets up rules for how the plans are run, including who can offer them, how they are registered, and how the money is invested. A Superintendent of Financial Institutions will oversee these plans. The Superintendent will make sure the plans follow the rules and protect the members' savings.
Employees can join a PRPP through their workplace, and self-employed people can join on their own. The bill has rules about when people become members and how much they can put in. Members can choose how their money is invested, but there will also be a default option if they don't want to make that choice. The bill also includes rules about what happens to the money if someone dies, gets divorced, or wants to move their money to another retirement plan.
The bill also amends other laws, such as the Bankruptcy and Insolvency Act and the Canadian Human Rights Act, to include PRPPs. These changes make sure that PRPPs are treated fairly under the law and that members' rights are protected. The law will come into effect on a date set by the government.
Issues
Social Services
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Seniors and Pensions
This bill focuses on helping people save for retirement. It creates a new type of pension plan called a Pooled Registered Pension Plan (PRPP). These plans pool money from many people to lower the costs of investing and managing the plan. The goal is to give more Canadians access to a low-cost way to save for their retirement years.
The bill outlines who can offer these plans, how they are registered, and how they are run. It also sets rules about how the money in the plans can be used, including when people can take money out and what happens to the money if someone dies or gets divorced. These rules are designed to protect people's retirement savings.
PRPPs are designed to be accessible to both employees and self-employed individuals, providing a new avenue for retirement income.