Sun Life Financial receives licence to offer Pooled Registered Pension Plans
April 2, 2014
In 2012, the Government of Canada introduced Pooled Registered Pension Plans (PRPPs) as a way to help Canadians save for a more secure retirement. We are excited to share that Sun Life Financial has received its licence to administer a federal PRPP.Sun Life is now one step closer to offering a simple and affordable workplace savings plan solution to the millions of Canadians without access to a plan.
Sun Life Financial was issued its federal PRPP administrator licence by the Office of the Superintendent of Financial Institutions (OSFI) and is now in the process of completing the final step of registering our PRPP with OSFI and the Canada Revenue Agency (CRA).
PRPPs are a new type of workplace savings plan that allow small- to mid-sized businesses to participate in a simple, low-cost retirement savings program for their employees. PRPPs will help to level the playing field between smaller employers and their larger peers in attracting and retaining skilled workers, who seek affordable retirement savings options in the workplace. They are an important step in making Canada's pension system more inclusive and will mean more working Canadians have access to an affordable workplace retirement savings plan.
According to Statistics Canada, more than 500,000 Canadian businesses currently do not offer any kind of employee workplace savings plan. As a result, three to five million Canadians do not have access to a simple, affordable workplace pension plan. Results from the six years we've been conducting our annual Canadian Unretirement™ Index Survey show that Canadians participating in a workplace plan have an advantage - emotional and real - in saving for their retirement over those who do not participate in a plan.
The federal PRPP will be available for employees of federally regulated employers and employees and self-employed workers in the Northwest Territories, Nunavut and Yukon. As more pension jurisdictions come on board and pass PRPP legislation we will be able to offer PRPPs to more Canadians.
OSFI is the primary regulator and supervisor of pensions offered by federally regulated employers such as banks and telecommunication firms, among others. As a result, OSFI is responsible for supervising the federal PRPP offered by these employers, addressing situations where the administration of a PRPP does not comply with the legislation, the regulations or plan terms.
The CRA administers the tax laws and the benefit and incentive programs delivered through the tax system for the government of Canada. CRA will be involved in the regulation of the PRPP.
For more information on PRPP visit www.sunlife.ca/prpp.
Stay tuned for the launch of Sun Life Financial's industry leading PRPP!
Please contact your Sun Life Financial Group Retirement Services representative.