Side Img5

Plan details

With a PRPP, it’s easier for a small- to medium-sized business to participate in, and benefit from, a group retirement savings plan.

Now your business can:

  • Create goodwill with your employees through a flexible and affordable group retirement savings plan.
  • Attract and retain talent by enhancing your PRPP through employer contributions.
  • Give employees access to lower investment management fees than what they may find in a typical retail savings plan.
  • Access world-class plan administration.

We’re here to take care of the day-to-day management of your PRPP while you take care of your business.

Here are some PRPP highlights:

Employer requirements
  • Businesses eligible to offer a PRPP are those that fall under federal jurisdiction, including banking and inter-provincial transportation, and residents of Canada with a valid social insurance number who are employed or self-employed in the Yukon, Northwest Territories and Nunavut.
Employer contributions
  • Optional
  • Flexible – employers may change their contribution rates upon notice to Great-West Life
  • Not subject to payroll taxes
  • Locked in
Employee contributions
  • Employees can change their contribution rate at any time in a Great-West Life PRPP
  • Can be deducted from taxable income and subject to the same limits as RRSPs
  • Locked in (amounts withdrawn under special circumstances will be subject to federal tax)
Enrolment
  • Full-time employees are automatically enrolled
  • Part-time employees with 24 months of continuous service with the same employer are automatically enrolled in the plan
  • Employees have 60 days, after being enrolled in the plan, to withdraw from the plan
Administration
  • PRPPs are administered by authorized financial institutions
Investments
  • There will be a default investment option if the employee doesn’t make an investment selection.
  • There are five other investment options offered.
  • The same investment management fees apply to all plan participants.
Portability
  • Employees may continue contributing to the same plan even after changing employers, or transfer the full amount to another PRPP.