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.
Archive
Chad Sullivan and Kathleen Nash Overview The issue of hateful and harassing social media communication has garnered much attention in both the media and, more recently, in the courtroom. In Caplan v Atas,¹ Justice Corbett…
Read MoreDaniel MacKenzie and James Galsworthy On January 15, 2021, the United Kingdom’s Supreme Court (“Court”) issued a decision which is likely to be viewed as good news for policy holders who have endured business interruption…
Read MoreGrant Machum, ICD.D and Mark Tector 2020 was a challenging year for many people and businesses. And while we are all happy to have 2020 in the rearview mirror, we anticipate that there will continue to…
Read MoreKevin Landry and William Wojcik On December 11, 2020, the federal government announced Canada’s strengthened climate plan in a document titled A Healthy Environment and a Healthy Economy (“Plan”). The Plan proposes to increase the carbon…
Read MoreKenneth McCullogh, QC and Conor O’Neil, P.Eng. On December 18, 2020, the Legislative Assembly of New Brunswick passed the Construction Remedies Act. The new legislation will not take effect until a date to be named…
Read MoreMark Tector In a recent decision, an adjudicator upheld the dismissal of an employee/complainant who made inappropriate and offensive remarks on a call with a customer (Crawford v Canadian Imperial Bank of Commerce). The complainant…
Read More2020 brought us all challenges that have been unprecedented in our time. The COVID-19 global pandemic has impacted us in ways that were unimaginable. As Atlantic Canada navigated the challenges of changing worlds, and workplaces,…
Read MoreKathleen Leighton On December 31, 2020, the Honourable Marc Garneau, Minister of Transport, announced new pre-boarding COVID-19 testing requirements that would be coming into effect in short order. In particular, as of January 6, 2021…
Read MoreDaniela Bassan, QC, has published an article in volume 36 of the Canadian Intellectual Property Review. She comments on an Italian case granting copyright protection for a retail store in the cosmetics industry, and considers…
Read MoreRob Aske In late December 2020, the Supreme Court of Canada (“SCC”) issued a key decision elaborating on the duty of honesty in relation to termination of a commercial contract. This duty was primarily established…
Read More