A pension plan designed for employees of small to mid-sized companies and people who are self-employed is now available in New Brunswick.
The province has joined six other provinces in offering the Pooled Registered Pension Plan, which will be supervised and regulated by the Office of the Superintendent of Financial Institutions.
“We hope those eligible for a plan like this will take a look at the benefits it offers,” said Finance and Treasury Board Minister Ernie Steeves. “For example, these plans can follow employees as they move around and/or in and out of the workforce. Contribution options are also flexible.”
A pooled registered pension plan is a type of defined contribution plan that can offer retirement income for employees and the self-employed who do not have access to a pension in their workplace. They provide an additional low-cost option for small and mid-sized businesses in cases where a full pension plan may be too onerous or costly.
An individual can be enrolled in this type of plan by their employer if the employer chooses to participate, or an employee can contact the plan administrator directly to become a member.
British Columbia, Manitoba, Nova Scotia, Ontario, Saskatchewan, and Quebec are also signatories of the multilateral agreement with the federal government that streamlines regulatory oversight of these plans.
More information about these plans is available online.