Manitoba to allow pooled pensions for small biz, self employed
The theory is that a small business will be better able to retain employees when they can provide access to a pension plan
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WINNIPEG—The province has taken a big step toward offering another retirement savings option to Manitobans.
Pooled registered pension plans will soon be available, pending an agreement with Ottawa and other provinces.
The plans, which are targeted at small businesses and the self-employed, are already available in Ontario, B.C., Quebec, Nova Scotia and Saskatchewan.
Finance Minister Cameron Friesen says they provide a level of plan expertise that would never have been available to a small business or individual contributor.
The theory is that small businesses will be better able to retain employees when they can provide access to a pension plan.
Since the plans are privately delivered, employees can keep their pension even if they decide to change jobs.
“It’s more affordable to get in, the administrative costs are much lower,” said Loren Remillard, president of the Winnipeg Chamber of Commerce. “You’re pooling a number of contributors into the plan.”
Once Manitoba signs onto the multilateral agreement, licensed providers will be able to offer PRPPs in the province.