Pooled Registered Pension Plans (PRPPs)

A Pooled Registered Pension Plan (PRPP) is a new type of savings plan intended to provide employees and the self-employed with another way to accumulate funds for retirement in a tax-assisted manner. They operate much like a defined contribution registered pension plan, but they hold assets pooled together from multiple participating employers and are administered by eligible licensed financial institutions, such as insurance companies and banks.

Provided certain criteria are met, employers can offer PRPPs for their employees or, if the company does not offer this option, the employee can become an individual member of the plan.

Since these plans involve large pooled funds, one of their key benefits is that the plan members should benefit from lower investment management costs.