The Government of British Columbia is introducing legislation for PRPPS.
If approved, it will be the first province to pass PRPP legislation following the Pooled Registered Pension Plans Act.
“We urge all provincial governments to follow B.C.’s lead since PRPPs will be an excellent addition to the retirement savings options for small business owners and their employees,” says CFIB president Dan Kelly.
Unlike company RRSPs, PRPPs aren’t subject to payroll taxes, and the administration fees are expected to be lower. This means small firms can set more money aside for employee retirement plans.
Recent CFIB member data reveals up to a third of small firms would consider offering a PRPP in their workplace to improve savings for employees.
Kelly adds the main reasons 80% of small firms don’t have any form of company retirement plan for the business owner or their employees is because the costs and administrative burdens of offering plans is too high.