Turn key solution on individual & group pension plans backed by unique investment strategies
Pension Plan Investments for Optimal, Tax Efficient Financial Planning.
Individual and group pension plans are little more than a financial and tax planning tool that maximizes the tax efficiency of each dollar earned.
In collaboration with our actuary partners, we build the proper asset accumulation schedule into your pension plan – which is then seconded by the deployment into unique investment solutions based on your overall ability and willingness to accept risk.
About IPPs
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.
Actuarial Services for IPPs
Services provided for an IPP
Our actuary partners 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.
Investment Services
IPP Investment Solutions
All our IPP investment solutions are offered and managed by our affiliated Portfolio Management firm, ST Global Asset Management Inc:
ST Global Cautious Pension Plan Portfolio
The ST Global Cautious Pension Plan Portfolio seeks to invest in largely income generation instruments for a 4% target return with very low volatility.
Strategy
The portfolio’s investment objective is achieved by investing in a combination of:
- Treasury Bills
- Treasury Bonds
- Commercial Paper
- Investment Grade Corporate Bonds
- Fixed Income ETFs
- Fixed Income Specialty ETFs
- Dividend Paying Securities
- ST Global Platform Traded Funds
Style: The portfolio’s program style is long-only.
Sub-Strategies: Income.
ST Global Cautious Pension Plan Portfolio
The ST Global Open-Minded Pension Plan Portfolio seeks to invest in largely income generation instruments for a 7.5% target return with low-to-medium volatility.
Strategy
The portfolio’s investment objective is achieved by investing in a combination of:
- Treasury Bills
- Treasury Bonds
- Commercial Paper
- Investment Grade Corporate Bonds
- Fixed Income ETFs
- Fixed Income Specialty ETFs
- Dividend Paying Securities
- Quality and / or Low Beta Equities
- ST Global Platform Traded Funds
Style: The portfolio’s program style is long-only.
Sub-Strategies: Income, Value equities.
ST Global Opportunistic Pension Plan Portfolio
The ST Global Opportunistic Pension Plan Portfolio seeks to invest in largely income generation instruments for a 12.0% target return with medium-to-high volatility.
Strategy
The portfolio’s investment objective is achieved by investing in a combination of:
- Treasury Bills
- Treasury Bonds
- Commercial Paper
- Investment Grade Corporate Bonds
- Fixed Income ETFs
- Fixed Income Specialty ETFs
- Dividend Paying Securities
- Quality and / or Low Beta Equities
- Growth and / or High Beta Equities
- ST Global Platform Traded Funds
Style: The portfolio’s program style is long-only.
Sub-Strategies: Income, Value equities, Growth Equities.
3 Programs
Three programs to chose from to satisfy CRA guidelines as well as your personal risk tolerance.
120+ Exchanges
Programs are based on investment instruments traded on over 120 exchanges and OTC market places.
2 CIRO approved custodians
IPP and GPP accounts are open only at CIRO approved custodians benefiting from full CIPF protection.
CONTACT DETAILS
Get in touch
Give us a call or drop by anytime, we endeavour to answer all enquiries within 24 hours on business days. We will be happy to answer your questions.