New Brunswick joins PRPP agreement

Summary#

These final regulations add New Brunswick to the list of provinces named in the Pooled Registered Pension Plans Regulations. That change lets the federal government, with approval, sign the multilateral agreement that lets New Brunswick join the existing cooperative supervision system for pooled pension plans. The regulations came into force on March 27, 2023.

What it does#

• Adds New Brunswick as a province that can be part of the multilateral agreement under the Pooled Registered Pension Plans Act.
• Names New Brunswick’s provincial pension supervisor (under the Financial and Consumer Services Commission) as a prescribed supervisory authority for that purpose.
• Enables the federal government to enter into the Multilateral Agreement Respecting Pooled Registered Pension Plans and Voluntary Retirement Savings Plans with New Brunswick, but does not force the government to sign the agreement.

Who's affected#

• Office of the Superintendent of Financial Institutions (OSFI), which already licenses and supervises PRPP administrators and would be the single supervisor for multi‑jurisdictional plans under the agreement.
• PRPP administrators and financial institutions that offer pooled registered pension plans across provinces.
• Employers, employees, and self‑employed people in New Brunswick who might choose to join a PRPP.
• Provincial regulators in New Brunswick (the Financial and Consumer Services Commission) because some supervisory tasks would be coordinated through the multilateral agreement.
• The change is mainly technical: it designates a province and its supervisor so New Brunswick can join the existing arrangement.

Why it matters#

• Joining the multilateral agreement means PRPP administrators would generally deal with one supervisor (usually OSFI) instead of separate regulators in each province. That can cut duplication and lower costs for administrators.
• Lower administrative costs can make it easier to run large, low‑cost pooled pension plans. That can expand access to workplace retirement savings for more people in New Brunswick.
• If New Brunswick were not designated, administrators operating in multiple provinces might need multiple licences and registrations, which raises costs and complexity.