The current service contributions can be remitted as soon as the registration documents have been submitted to CRA by iA. You may refer to the Implementation Calendar for more information. Current service contributions will then be required to be remitted monthly to the PPP®.
You should cease contributing to your RRSP until you receive a new Notice of Assessment after the set up of your PPP®. The new Notice of Assessment will provide you with the RRSP room remaining after having set up the PPP®. Depending on your earned income in the year 1990, you may be able to contribute an amount to your RRSP in the year your PPP® is established. In the years following the setup of the PPP®, you will receive additional RRSP room of $600 per year, after reflecting the benefits recognized within the PPP®.
No, the PPP® is effective from January 1st of the year it is implemented. It may only have an impact on the year the deductions are actually taken. Employer contributions made to the PPP® during a fiscal year, or within 120 days of the fiscal year-end of the company, will be tax-deductible for that fiscal year if they relate to service prior to the fiscal year-end.
The company’s PPP® contributions are deductible. The company must include any pension plan deficit in its financial statements. Our team can help you calculate the amounts to be disclosed in financial statements.
Fees can be paid by the employer or be deducted from the assets of the PPP®.
No. There is an annual fee of $1,250 charged each year.
It depends on the number of years you have been working for the company, your earnings history, your unused RRSP deduction limit for the previous year, and the size of your current RRSP assets. You can ask INTEGRIS to prepare a detailed illustration that would show your exact amount of RRSP transfer by sending an email to question@integris-mgt.com or rri-ipp@ia.ca.
If the PPP® is subject to a pension legislation, the employer must contribute the current service amount indicated in the actuarial valuation report. The employer is also required to contribute the special payments recommended within the report for the amortization of any deficits.
You will have access to the secure website ia.ca/myaccount where you will be able to see your investments, make changes to your fund selection, and update your account. You can also submit your changes by mail.
At the time of retirement or termination of the plan, there may be a deficit in the plan. The employer is required to fund the deficit before the member can transfer his rights out of the plan, unless the pension legislation allows for a benefit reduction. This deficit will potentially be greater than the maximum funding deficit indicated in the actuarial valuations.
Yes, so long as the company is an operating company and be able to show that it has an employee/employer relationship with the member, in which case it can contribute according to the salary paid to that member.
Yes, the surplus RRSP assets transferred will be attributed to the additional voluntary account and calculated separately from the assets for the defined benefit portion of the PPP®.
Yes. It is a corporate decision.
In most sale of business situations, the PPP® will be terminated. Two options are available: transfer to LIRA (or RRSP if the PPP® is not subject to the pension legislation) or purchase an insured annuity. The transfer option will be subject to CRA’s maximum transfer rules. We recommend that you contact us before selling the company to look at your options and customize the best option for you. However, you may also wish to assign the PPP® to a new sponsor corporation as well.
At retirement or termination, it is possible to improve the benefits paid from the plan. The employer can take additional deductions to increase the benefits paid to the member. The improvements can be an additional early retirement pension subsidy, a bridge pension until age 65, a higher indexation, or any combination of those three.
You will have access to the secure website My Client Space found at ia.ca/myaccount where you will be able to see your investments, make changes to your fund selection, and update your account.
For a designated pension plan, CRA limits the deductions that a company can take by requiring a maximum funding valuation based on prescribed assumptions. A designated pension plan is a plan for which more than 50% of the total pension credits for plan members are for connected members or members whose income exceeds 2.5 times the Year’s Maximum Pensionable Earnings of the Quebec (or Canada) Pension Plan ($58,700 $ in 2019).
No, only employment income with the participating employer is considered (T4 - Box 14).
It depends on which provincial jurisdiction your PPP® is subject to. If additional voluntary contributions are made to your PPP®, they will not be locked in.