- PRPPs will be administered by licensed third-party administrators such as banks or insurance companies.
|Employee enrolment/ participation
- If your employer offers a PRPP to employees in your class and you are a full-time employee, you will be automatically enrolled in the PRPP.
- Part-time employees in an eligible class of employees must be automatically enrolled after 24 months of continuous employment, but may be enrolled before then.
- The administrator or your employer must notify you, in writing, that there is a 60-day period to opt out of the plan if you do not want to be a member.
- If you do not opt out within 60 days, contributions will begin to be automatically deducted from your pay.
- If you are employed in the Yukon, the Northwest Territories or Nunavut, you may join a plan on your own.
|PRPP investment choices
- PRPP administrators may provide up to six investment options for members to choose from, including a default option.
- The default option will be a balanced fund or a portfolio of investments that take into account a member’s age, such as a life-cycle fund.
- If you do not choose one of the available investment options, your funds will be invested in the default option.
- Your contribution limit depends on your available RRSP contribution limit.
- Your contributions will be deducted from your pay.
- Your contributions are tax-deductible and grow tax-free until you withdraw them.
- Contribution rates for members are set by the administrator. The administrator may provide a choice of different contribution rates.
- You can set your contribution rate at 0% if it has been 12 months since you began contributing to the PRPP.
- All contributions, including employer contributions (if any), are locked in.
|Transferring PRPP savings
- You can transfer your PRPP savings out of a PRPP if:
- you are no longer employed by an employer participating in a PRPP
- the PRPP in which you participated is terminated
- a member of a PRPP dies and you are the surviving spouse or common-law partner
- you join a PRPP on your own and you decide to terminate your membership in the PRPP.