Regulation - LGIC
Regulations under the Pooled Registered Pension Plans Act, 2015
Regulation Number(s):
N/A
Instrument Type:
Regulation - LGIC
Bill or Act:
Pooled Registered Pension Plans Act, 2015
Summary of Proposal:
In the 2015 Ontario Budget, the government reiterated its commitment to the creation of a coordinated approach to the administration and regulation of PRPPs across the country. It also stated that the government would continue to work with other jurisdictions in an effort to promote harmonization, which could help minimize costs and foster greater portability, supporting a modern, mobile workforce.
Consistent with the 2015 Ontario Budget, the draft regulations incorporate by reference many of the federal Pooled Registered Pension Plans Regulations ("federal PRPP Regulations"). Where necessary, the draft regulations include Ontario-specific regulations.
The matters incorporated by reference from the federal PRPP Regulations address:
• the conditions to be met for the regulator to issue a licence;
• investment options, including a default option;
• the prohibition on inducements, with limited exceptions;
• the definition of a low-cost plan;
• when members may set their contribution rate to zero;
• information to be provided by the administrator to members and the regulator;
• timelines for remittances of contributions by an employer to a PRPP administrator;
• circumstances in which PRPP funds may be unlocked;
• conditions for receiving variable payments;
• consent to receive electronic documents and administrator notification obligations; and
• administrator filing requirements upon termination of a PRPP.
Links to the federal PRPP legislation are included below.
The Ontario-specific regulations that are outlined in the draft regulations address:
• multilateral agreements;
• creditor protection of funds;
• the transfer of PRPP funds to permitted investment vehicles;
• treatment of accounts on relationship breakdown;
• additional conditions on administrator licences; and
• the content of forms used for withdrawal of funds.
Consistent with the 2015 Ontario Budget, the draft regulations incorporate by reference many of the federal Pooled Registered Pension Plans Regulations ("federal PRPP Regulations"). Where necessary, the draft regulations include Ontario-specific regulations.
The matters incorporated by reference from the federal PRPP Regulations address:
• the conditions to be met for the regulator to issue a licence;
• investment options, including a default option;
• the prohibition on inducements, with limited exceptions;
• the definition of a low-cost plan;
• when members may set their contribution rate to zero;
• information to be provided by the administrator to members and the regulator;
• timelines for remittances of contributions by an employer to a PRPP administrator;
• circumstances in which PRPP funds may be unlocked;
• conditions for receiving variable payments;
• consent to receive electronic documents and administrator notification obligations; and
• administrator filing requirements upon termination of a PRPP.
Links to the federal PRPP legislation are included below.
The Ontario-specific regulations that are outlined in the draft regulations address:
• multilateral agreements;
• creditor protection of funds;
• the transfer of PRPP funds to permitted investment vehicles;
• treatment of accounts on relationship breakdown;
• additional conditions on administrator licences; and
• the content of forms used for withdrawal of funds.
Further Information:
Draft PRPP Regulations
Pooled Registered Pension Plans Act, 2015
Federal Pooled Registered Pension Plans Act
Federal Pooled Registered Pension Plans Regulations
Proposal Number:
16-MOF019
Posting Date:
July 5, 2016
Comments Due Date:
August 19, 2016
Contact Address:
Draft Regulations under the PRPP Act
Pension Initiatives Unit, Pension Policy Branch
Ministry of Finance
5th Floor, Frost Building South
7 Queen's Park Crescent East
Toronto, ON
M7A 1Y7
or
Pension.Feedback@ontario.ca
Pension Initiatives Unit, Pension Policy Branch
Ministry of Finance
5th Floor, Frost Building South
7 Queen's Park Crescent East
Toronto, ON
M7A 1Y7
or
Pension.Feedback@ontario.ca