Ontario adopts Multilateral Agreement on PRPPs
On February 17, 2017, the Ontario government adopted a regulation that will allow Ontario to join the Multilateral Agreement Respecting Pooled Registered Pension Plans and Voluntary Retirement Savings Plans (the “Multilateral PRPP Agreement”). Effective March 31, 2017, Ontario will join British Columbia, Nova Scotia, Quebec, Saskatchewan and the federal government in signing the Multilateral PRPP Agreement (see our News and Views of July 2016).
The Multilateral PRPP Agreement will permit Pooled Registered Pension Plans (“PRPP”) to be registered only with the federal Office of the Superintendent of Financial Institutions (“OSFI”) in order to be effective across all jurisdictions that have signed the Multilateral PRPP Agreement. The process for registering and administering a PRPP that is also a Quebec Voluntary Retirement Savings Plan (“VRSP”) will also be simplified.
The adoption of the Multilateral PRPP Agreement was the final regulatory step required to allow financial institutions to offer PRPPs in Ontario.