The province has announced it is removing caps on annual contributions and transfer limits to individual Saskatchewan Pension Plan (SPP) member accounts.
On April 13, 2023, Saskatchewan Minister of Finance Donna Harpauer and SPP announced the removal of the caps to be effective immediately where SPP members will be eligible to contribute up to their full available RRSP room each year.
According to a release, members may also transfer locked-in registered retirement savings to their SPP member accounts without limiting the amount of the transfer.
“SPP is one more tool to help reach a policy goal of retirement income adequacy in Saskatchewan. It works in tandem with the private sector providers to help people save for their own retirement in a cost-effective way,” stated Minister Harpauer in a release.
“Plan participants, and in particular, small and mid-size businesses requested this change and we are responding.”
Shannan Corey, SPP executive director, said the SPP always had contribution caps on how much you could transfer in from other unlocked registered funds.
“Members have been asking for the ability to be able to do more, especially members that don’t have access to other professional managed pension funds,” she said.
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“That cap, even though it served a purpose, was a barrier for a lot of our members. And so, they did want the ability to use this fund within their full RRSP limits.”
SPP currently has about 22,000 active members and all have the ability to contribute more or to transfer in more from other unlocked registered savings plans.
“We also actively advertise to any individual who’s not currently a member who is looking for the opportunity to just start up again to participate in a professionally managed pension plan,” said Corey.
“All of the employers, especially small to medium size employers who don’t have other options, can now use this new limitless pension opportunity.”
The contribution limit for the plan was set at $72,000.
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