Joining a PRPP
Eligibility
If you have a valid Canadian social insurance number (SIN), you can participate in a PRPP if any of the following conditions apply. You:
- are employed or self-employed in the Nunavut, Yukon, or Northwest Territories
- work in a federally regulated business or industry for an employer who chooses to participate in a PRPP
- live in a province that has the required provincial standards legislation in place
Note
The Pooled Registered Pension Plan Act applies to PRPPs within the legislative authority of the federal government. Each province must enact its own legislation for PRPPs to be available to individuals not covered in the criteria above. For more information on how to contact the federal and provincial supervisory authorities, refer to Pension supervisory authorities.
Participation
You can be enrolled into a PRPP by either of the following:
- your employer (if your employer chooses to participate in a PRPP)
- a PRPP administrator (such as a bank or insurance company)
Once you are enrolled, a PRPP account is created under your SIN. You choose the amounts to be contributed from your pay cheque. Your contributions, your employer’s contributions, and any lump-sum contributions are all pooled together and credited to your account.
The amount you can contribute is limited by your RRSP deduction limit.
The amount that can be contributed is calculated based on the earned income you report on your income tax and benefit returns from prior years. It is important to file an income tax and benefit return each year when participating in the PRPP to keep your RRSP deduction limit up-to-date.
For more information, refer to Where can you find your RRSP deduction limit