Group RRSP’s

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Registered Retirement Savings Plans are intended to encourage your employees to save for retirement by allowing them to defer paying income tax on retirement savings until the money is withdrawn. To assist with your understanding of the various employee retirement plan alternatives available to employers and employees, we are pleased to provide the following information and plan options. We welcome future discussion with you and your employees to assist in providing you with a plan design that suits your needs.

Group DPSP’s

Deferred Profit Sharing Plans are designed to reward good performance and create a sense of partnership between the plan sponsor and the members of the plan. This plan type is only available as a group arrangement.

What is a Deferred Profit Sharing Plan?

• A DPSP is an employer-sponsored profit sharing plan registered as a trust with the Canada Revenue
• Agency (CRA). A DPSP is usually offered in conjunction with a group RRSP. The employee contributes to the group RRSP and the employer’s matching contributions are deposited to the DPSP.
• On a periodic basis, the plan sponsor shares business profits with the plan members by contributing to the DPSP on each plan member’s behalf. Member contributions are not permitted.
• A DPSP gives the plan sponsor the option to link contributions to profitability of the business. There is no minimum required contribution – if there is negligible profit in a year, the sponsor is not required to contribute. However, DPSP’s are subject to maximum contribution limits set by CRA.
• Sponsor contributions are tax deductible for the plan sponsor. Members do not pay income tax on DPSP contributions until funds are withdrawn.

Retiree Benefit Plans

For many people, retiring means leaving their group health and dental coverage behind. While provincial plans do cover some health care expenses, many day-to-day and emergency expenses will now be your responsibility. We can put together a plan for you, which will allow you to choose from options such as Health, Dental, Prescription Drug, and Travel coverage. Simply apply for and purchase this coverage within 60 days following your date of retirement. There are no medical statements required, and coverage is guaranteed.