The BC Government has proposed legislation to provide a new retirement program called the PRPP. Based on the information available at this time, some of the highlights of this new program will include the following:
- Create financial safety net for the approximately two-thirds of B.C. workers who do not have access to group pension plans.
- All workers in B.C. eligible to enrol in defined-contribution pension plans.
- Low-cost pension plans available to millions of Canadians who do not have occupational pension plans.
- PRPPs will be managed by licensed financial institutions – IGL Financial Solutions will be involved in the roll out of this program when it is made available.
- The PRPP will like provide additional tax advantages to employers that are not available under alternative models such as group RRSPs.
- If an employer chooses to offer a PRPP to its employees, they will be automatically enrolled and have the right to opt out.
- Employers will not be obligated to make matching contributions
IGL Financial Solutions is actively monitoring this legislation as this new program not yet become law. If you wish to learn more about the plan and the options available once the program is made available please contact us and we will ensure that you are updated with the appropriate information.