Client Update: Nova Scotia Consultation on Pooled Registered Pension Plan (PRPP) Regulations
On September 9, 2015, the Nova Scotia Department of Finance and Treasury Board opened a consultation on draft Regulations for Pooled Registered Pension Plans (PRPPs). The draft Regulations and an FAQ are posted online. PRPPs are voluntary retirement savings plans in which employees and employers may choose to pool contributions and administration costs with other participants. Employers and employees decide how much they contribute to the plan. Third party administrators must be licensed in order to provide PRPPs and several insurance companies are currently licensed federally.
The Nova Scotia Legislature passed the PRPP Act in the fall of 2014 (for more information on the PRPP Act, see a summary here) but it has not yet been proclaimed in force as regulations still need to be finalized. In the PRPP Act, the Nova Scotia government largely adopted the federal Pooled Registered Pension Plans Act (Canada); similarly, the proposed Regulations largely mirror the federal Regulations. The differences between the proposed Regulations and the federal regulations include:
- Different definition of spouse (as adopted in the Nova Scotia PRPP Act).
- Different options for where the funds in a PRPP may be transferred – The options are consistent with those under the Nova Scotia Pension Benefits Act, which allows transfers to certain locked-in retirement savings arrangements including a locked-in retirement account (LIRA), life income fund (LIF) or life annuity. Conditions for life annuities are similar to those under the new Pension Benefits Regulations, including the requirement of a joint and survivor annuity if the member has a spouse. Limitations on the options are also consistent with expected amendments to the Pension Benefits Act and Regulations that would allow transfers between registered pension plans and PRPPs. Unlike the federal regulations, the proposed Nova Scotia Regulations do not allow transfer to a locked-in registered retirement savings plan (RRSP).
- In addition to meeting the requirements under the federal legislation, an administrator must register all of their PRPPs under the federal Act before they can be licensed in Nova Scotia.
More information on the federal PRPP requirements is available on the Canada Revenue Agency’s website.
Written comments on the proposed Nova Scotia Regulations may be submitted by October 9, 2015 to: PRPP@novascotia.ca or Finance Treasury Board, Pension Regulation Division, PO Box 2531, Halifax, NS, B3J 3N5.
The foregoing is intended for general information only. If you have any questions, or for a detailed list and background of our Pension and Benefits Team, please visit our website at www.stewartmckelvey.com.
We are pleased to present Beyond the border, a quarterly publication aimed at providing the latest information to clients about new programs and other immigration-related information that may be pertinent to employers of foreign workers…Read More
We are pleased to present the fifth issue of Discovery, our very own legal publication targeted to educational institutions in Atlantic Canada. As the pace around campus turns up as universities and colleges begin a…Read More
Level Chan and Dante Manna On October 31, 2019, the Supreme Court of Canada issued its decision in Threlfall v Carleton University, 2019 SCC 50, dismissing an appeal from the Quebec Court of Appeal. Carleton…Read More
Andrew Burke, Colleen Keyes and David Slipp Starting January 1, 2020 “Distributing Corporations” under the Canada Business Corporations Act (“CBCA”) will be subject to new disclosure requirements relating to the diversity of directors and senior…Read More
Killian McParland With the federal election coming up next week on October 21, 2019, it is a good time for a reminder of the employer obligations under the Canada Elections Act. Employees who are eligible…Read More
John Samms The upcoming federal election is drawing near. You may be thinking about exercising your democratic and constitutional right to vote – you may not be. You may never even consider participating in the…Read More
Twila Reid and Kara Harrington On January 1, 2020, changes to the Newfoundland and Labrador Occupational Health and Safety Regulations, 2012 (“Regulations”) will take effect. These changes impact employers in a variety of ways, most…Read More
Peter McLellan, QC In the January 18, 2019 article, Change is the only constant – Bill C-86 changes in federal labour and employment regulation, we outlined in detail massive changes to how federal labour and…Read More
Rick Dunlop and Madeleine Coats The proposed Workplace Harassment and Violence Prevention Regulations (“Regulations”) will replace the current workplace violence obligations in the Canada Occupational Health and Safety Regulations. Although the Regulations will likely not…Read More