Pooled Registered Pension Plan (PRPP)

What Is a PRPP?

A Pooled Registered Pension Plan (PRPP) is a type of retirement savings plan designed to make it easier for employees of small businesses and self-employed Canadians to save for retirement. It pools contributions from multiple members, making it more efficient and cost-effective than setting up individual plans.

PRPPs were introduced by the federal government to increase access to low-cost, professionally managed retirement plans—especially for those without access to traditional workplace pensions.

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Who Can Use a PRPP?

• Employees of small and medium-sized businesses whose employers offer a PRPP.
  
  
• Self-employed individuals who wish to join a plan in provinces that allow individual participation.
  
  
• Employers are not required to contribute—but they can if they choose to.
  
  

PRPPs are available in federally regulated industries and in some provinces that have adopted PRPP legislation, such as British Columbia, Alberta, and Quebec (via VRSPs, a similar plan).

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Who Can Use a PRPP?

• Employees of small and medium-sized businesses whose employers offer a PRPP.
  
  
• Self-employed individuals who wish to join a plan in provinces that allow individual participation.
  
  
• Employers are not required to contribute—but they can if they choose to.
  
  

PRPPs are available in federally regulated industries and in some provinces that have adopted PRPP legislation, such as British Columbia, Alberta, and Quebec (via VRSPs, a similar plan).

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Key Features

• Portability: The account is yours—even if you change jobs or become self-employed.
  
  
• Cost-Effective: Lower administrative fees due to pooling of funds.
  
  
• Simplicity: Easy to set up and manage, especially for small employers.
  
  
• Locked-In Funds: Contributions are usually locked in until retirement, though some early withdrawal options exist under specific circumstances.

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Key Takeaways

• PRPPs are designed for Canadians without access to traditional workplace pensions.
  
  
• They offer low-cost, professionally managed retirement savings.
  
  
• Funds are tax-sheltered and locked in for retirement use.
  
  
• Ideal for small businesses, employees, and self-employed individuals seeking a structured way to save for retirement.

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