Group Retirement

The Registered Pension Plan (RPP) is an employer-sponsored plan that is registered with Revenue Canada Agency and conforms to provincial legislation. There are two types of RPPS – Defined Contribution Plan (DC Plan) and Deferred Profit-Sharing Plan (DPSP).

With the Defined Contribution Plan, employer and employee contributions are specified in the contract and the deposits accumulate with their respective investment returns. At retirement, the employee can purchase an income stream through a number of retirement vehicles (e.g. an annuity). The amount of retirement income available to the employee is dependent on how much was accumulated over the employment years. However, the employer will know their contribution cost, hence the term – defined contribution.

The Deferred Profit-Sharing Plan (DPSP) is a registered plan for the benefit of non-shareholder employees. The contributions are tax deductible to the employer and tax sheltered for the employee, until they withdraw the money from the plan. Only employers can contribute to a DPSP.

Transferring a business from one generation to another (or to a new owner) without a succession plan dramatically reduces your chances of success.

Estate preservation is important for those who have worked a lifetime to build their wealth. The “how to distribute” question is often the most challenging. Why take a risk with something so valuable?

We will provide you and your legal and accounting advisors with the expertise and guidance you need to ensure the successful continuation of your business after it’s passed on to the next person. We look at:

• Share redemption funding
• Intergenerational wealth transfer
• Strategic employee capital funding
• Retirement compensation agreements
• Maintaining family business harmony
• Stabilizing business value