REGINA, Sask. – The provincial government has brought in amendments aimed at continuing legal protections on income in retirement.
First reading has been given to amendments to The Pooled Registered Pension Plans (Saskatchewan) Act on Tuesday. In speaking to reporters, Minister of Justice and Attorney General Tim McLeod explained what this was about.
“At a very high level, the amendments that we're introducing on that bill are to take advantage of changes that the federal government made a couple of years ago to create what's called the Variable Payment Life Annuity for retirees. We have to change our provincial legislation so that Saskatchewan retirees can make use of that option.”
Holly Ballan, Acting Executive Director, Pensions Division. Financial and Consumer Affairs Authority of Saskatchewan, said this would allow a “new, additional retirement income option” to people once they retire.
What a VPLA is, she said, is an “annuity that would be paid from the plan. It's variable because payments could fluctuate, they could increase or decrease based on investment experience and longevity of the members in the plan. It's another option and it would be cheaper than purchasing from an insurance company because the investments and mortality are pooled.”
The bill being introduced would” expand existing provisions related to creditor protection, maintenance enforcement, and division of family property on a spousal breakdown to a VPLA.”
She said that in 2021, the federal income tax act was amended to allow VPLAs. The federal government then amended their PRPP (Pooled Registered Pension Plans) Act act to also allow VPLAs.
“And our legislation basically adopts the federal Act,” Ballan said. “So once those regulations are in place, Saskatchewan members would be able to choose a VPLA as well.
The bill is expected to come back for second reading later this session.
