Winnipeg, MB (Mar. 5, 2014) – The Office of the Superintendent of Financial Institutions (OSFI) has issued a license to Great-West Life through its subsidiary, London Life, to administer pooled registered pension plans (PRPPs).
Great-West Life believes PRPPs will help improve the adequacy of retirement income for working Canadians by providing low-risk and low-cost employer-sponsored retirement plan options for small- to medium-sized businesses.
The federal PRPP act includes employers in federally regulated jurisdictions (e.g., banking, extra-provincial transport, aircraft transport, etc.) as well as employers and the self-employed in the territories. The federal legislation is the first of what is expected to be a harmonized map of federal and provincial laws offering PRPPs to all other employers.
As of the date of this release, Alberta, Saskatchewan and Quebec have passed legislation and are developing regulations. Additionally, British Columbia has recently re-introduced legislation.
As a leading group retirement provider to Canadian businesses and an active participant in pension reform discussions, Great-West Life is committed to launching a best-in-class PRPP.
Great-West Life’s experience working with small- to medium-sized businesses will enable it to provide these employers with a program that’s easy to implement and administer.
“Great-West Life respects the contributions small- to medium-sized businesses make to Canada and that’s why we want to help those business owners do what they do best,” says Jeff Aarssen, Senior Vice-President of Group Retirement Services for Great-West Life. “We want to make it as easy as possible for Canadian small business owners to set up their company’s PRPP so they’re free to focus on their day-to-day business.”
About Great-West Life
Great-West Life is a leading provider of capital accumulation plans in Canada, administering over 17,500* group retirement plans and over 1.3 million* member accounts. In the United States, Great-West Financial is the fourth-largest group retirement plan record keeper based on total participants, and Putnam Investments adds to the organization’s North American presence in this market.
* As at Dec. 31, 2013