Services

At Vias Ltd. we take care of all aspects of the management of individual pension plans, with the exception of the management of the funds themselves.

Plan set-up

• Prepare illustrations to determine the feasibility to set up an IPP;
• Consulting on the governance structure for the plan;
• Preparation of the application forms to register the plan with the Canada Revenue Agency (CRA) and calculation of the past service pension adjustment;
• Initial actuarial valuation and request to CRA for approval of plan contributions.

Annually

• Complete review of the plan, including an actuarial valuation and projection of benefits to retirement;
• Monitoring of the operation of the plan;
• Preparation of regulatory forms T244 and T3P;
• Maintenance of a specimen plan text with CRA.

Consulting at retirement

• Discussion on options available at retirement;
• Establishment of a procedure to begin withdrawing a pension from the IPP;
• Preparation of an actuarial report in the event of a plan termination;
• Correspondence with CRA.

What is an IPP?

An individual pension plan (IPP) is a defined benefit plan that is specifically designed for entrepreneurs and incorporated professionals and contains the most generous provisions permitted by the Income Tax Act.

The IPP allows for the accumulation of a retirement pension equal to 2% of the remuneration received in salary and bonuses for each year of participation since 1991. The pension credited each year can then be indexed until retirement according to the average salary increase in Canada. It should be noted that the pension credited is subject to the defined benefit limit established by the Canada Revenue Agency.

For example: a participant retiring at age 65 in 2018 with 25 years of service would be entitled to a pension of up to 73,611 $ a year.

Once payment commences, the pension from the IPP is indexed annually to the cost of living and provides a death benefit to the surviving spouse or beneficiary.

The IPP offers several advantages over a traditional RRSP, including :

• Allowable IPP contributions substantially higher than those permitted to a RRSP;
• Additional contributions permitted to offset poor market performance;
• Contributions made by the company and not by the participant;
• IPP contributions and operating expenses fully deductible for the company;
• Possibility of significant additional contributions at the set-up of the plan and at retirement;
• The spouse may participate in the same plan if he (she) is employed by the company;
• Funds better protected against creditors.

The IPP's investments are managed by the financial institution chosen by the company or participant.

In short, the IPP is an effective retirement savings tool that allows entrepreneurs and incorporated professionals to accumulate more money for retirement.

To learn more about an IPP

The best way to learn more about an IPP is to talk to one of our advisors. We can prepare an illustration of what this type of plan can represent for a participant, at no cost or obligation. We work closely with advisors and investment managers.