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Pension Plan

Pension plans administration is needed to balance current financial responsibilities with long-term needs Retirement is about so much more than leaving a career behind. It’s about making the most of the opportunities that lie ahead. CG Hylton’s advisers have pension plans in place to ensure your retirement and keep you on the right track! Remember, your retirement is in your hands.

A Personal Pension Plan (PPP) or Individual Pension Plan (IPP) is a defined benefit pension plan designed for the individual.

Covered earnings for Individual pension plans IPP’s are up to $135,000 in 2013. An IPP provides for theaccumulation of greater retirement assets – up to 65% more than an RRSP. Contributions are based on apercentage of employment earnings varied by age. The older you are, the more you may contribute.

The Individual Pension Plan is similar to an RRSP as it uses an investment account that grows over time to provide retirement benefits. However the IPP provides greater certainty of retirement assets, and allows the company to make additional tax deductible contributions should the rate of return on plan assets be less than 7.5% a year.

Key Benefits of the Individual Pension Plan (IPP)
  • Increase retirement assets and have your company make large tax deductible contributions.
  • Up to 65% more annual contribution room compared to RRSPs.
  • Reduce investment risk. Additional tax deductible contributions are allowed by the company should the rate of return be less than 7.5% per year.
  • 100% creditor proofing of plan assets.
  • Safer investment rules and limitations compared to RRSPs.
  • Pension plan surpluses belong to the member.
  • Provides pre-determined retirement benefits.
  • Allows a significant tax deductible contribution at retirement.
  • All costs, including investment expenses associated with the IPP are tax deductible to the company.
The Ideal Candidate

An owner, incorporated professional, or executive, age 40 and over, and earning over $134,834 in T4 or T4PS income, is the ideal candidate. IPP contribution limits increase with age, therefore an IPP may also be established for candidates with lower earnings.

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