An advisor’s guide to the PRPP

By Staff | March 21, 2012 | Last updated on March 21, 2012
3 min read

The government of Quebec has announced plans to introduce a voluntary retirement savings plans VRSPs, targeted at small and medium-sized enterprises and the self-employed.

The plan is very similar to the Pooled Registered Pension Plan (PRPP) announced by the federal government last year—the biggest difference is the voluntary nature of the Quebec version.

With the proliferation of registered investment vehicles—RRSP, TFSA and soon the PRPP—it may be time to do your due diligence on the newest kid on the block.

Feds roll out new pension option On November 17, 2011, the federal government introduced the much-anticipated Pooled Registered Pension Plans (PRPP) Act to address concerns over declining pension coverage for Canadians.

PRPPs: New vehicle, same old problems The Pooled Retirement Pension Plan (PRPP) may be touted as the cure-all for Canada’s foundering retirement savings system, but a rather unimpressed advice industry regards it as just another tool.

PRPPs don’t undercut financial advice The advice industry’s response to the newly introduced Pooled Retirement Pension Plan (PRPP) continues to be, at best, mixed.

PRPP support “virtually unanimous”: CLHIA An overwhelming majority of Canadians say they want a program that makes it easier for employers to offer a pension plan, according to a Research House survey commissioned by the Canadian Life and Health Insurance Association (CLHIA).

Find more about PRPPs on our sister site,

Why not save for retirement? An article entitled “A nudge and a wink” in the Economist last April observed, “Governments are trying to ‘nudge’ people into doing what is good for them.” Around the world, governments are trying to force people, for their own good, to save more for retirement.

Are PRPPs the gateway to compulsory pensions? Like most western countries, the level of pension savings in Canada is a major issue for the government, and increased life longevity is driving concerns about how Canada can provide for its senior citizens in the future.

Portability, auto-enrollment keys to PRPP success The federal government’s December 2010 announcement of the PRPP was the most significant piece of pension reform introduced in Canada since the 2008 economic crisis, according to a panel speaking at the Benefits & Pension Summit.

The good and the bad of auto-enrollment You don’t have to be a behavioural finance expert to recognize that humans tend to prefer instant gratification. Service provider experience has shown that the choice of taking cash is irresistible, and younger employees given the option by employers will choose the former.

Video: Affordable PRPPs Since the announcement of pooled registered pension plans (PRPPs) by the Federal government, plan sponsors and industry experts have been supportive of the idea.

Video: What will PRPPs mean for employers? What will pooled retirement pension plans mean for employers? Or for employees? Will Canadians voluntarily save more for retirement if the PRPP is introduced?

PRPPs: Not a silver bullet The Framework for Pooled Registered Pension Plans, released by the Department of Finance in December 2010, suggests that PRPPs would improve the retirement savings system by providing an “accessible, straightforward and administratively low-cost retirement option.”

Should pension funds administer PRPPs? This week, Michael Nobrega, CEO of the Ontario Municipal Employees Retirement System, went on the record saying that the government should open up the administration of the new pooled registered pension plans (PRPPs) to more than just “regulated financial institutions.” staff


The staff of have been covering news for financial advisors since 1998.