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A Group Tax-Free Savings Account allows individuals to accumulate after-tax money without paying tax on income earned within the account. Unlike an RRSP, contributions to a TFSA are not deductible for income tax purposes. Group TFSA offers members the flexibility to withdraw money from the account whenever they want, for whatever they want, without paying taxes on the withdrawn amount. Members can contribute up to $5,000 annually and the unused contribution room can be carried forward to the following years’ contribution limit, plus any amount withdrawn in previous years.

Sponsor advantages

• Comfort in knowing that members will continue to be taken care of by the professionals at Standard Life.
• Flexible eligibility rules.
• No government reporting for Plan Sponsors.
• Cost control - available on a no-fee basis.
• No requirement for employer contributions.
• Hassle-free administration.
• Competitive rate structure ensures that members' hard earned assets are working for them.
• Reinforces employers' commitment to a better work-life balance for their employees.

Member advantages

• A convenient, disciplined savings program through payroll deductions.
• Group buying power - higher interest rates and lower investment management fees.
• By naming your spouse/common-law partner as your beneficiary, your surviving spouse/common-law partner can transfer account to his/her own TFSA, tax-free.
• Flexibility at termination and at retirement - immediate vesting with no locking-in rules (vesting only applicable if employer contributes).
• A great way to save additional money for retirement or for unforeseen expenses.
• Flexibility to withdraw money at any time without tax implications.
• Ability to re-contribute any withdrawn amount in the future.
• Withdrawals are not reported as income and therefore do not affect calculations for government benefits such as GST/HST reimbursement and Guaranteed Income Supplement.
• The contribution amount is not dependent on investor's income level.
• One-stop shopping and consolidated reporting of all group savings accounts with Standard Life (RRSP, RPP, TFSA and Non-Registered accounts).

Under a Defined Contribution or "Money Purchase" Registered Pension Plan (DC-RPP), the contributions of plan members and plan sponsors are invested towards the funding of a retirement income. The contribution going into the plan is known, while the final benefit is not known. The amount of retirement income, which a plan member will receive, is based on:

• contributions made.
• investment selection.
• investment return.
• annuity rates or economic conditions at the time the employee retires.

Sponsor advantages

• Plan design flexibility.
• Contributions and plan expenses payable and paid by the sponsor are tax deductible.
• Contributions are exempt of payroll taxes.
• Cost control - contributions are often set as a percentage of payroll.

Member advantages

• Sponsor contributions towards retirement income.
• Early investment yields more investment income.
• Immediate tax reductions.
• Dollar cost averaging reduces investment risk.
• Group buying power - higher interest rates and favourable investment management fees.
• By naming a beneficiary, any death benefit is paid directly to the beneficiary with no need for probate.
• Creditor-proof - to the extent provided for under applicable legislation, pension plan contributions and benefits cannot be seized by creditors.

A Defined Benefit Registered Pension Plan (DB-RPP) is an arrangement to provide specific benefits at retirement, based on years of service and earnings.

Sponsor advantages

• Sponsors select the pension level and decide whether employee contributions are required or not.
• Contributions and plan administration expenses payable and paid by the sponsor are tax deductible.
• Employer contributions are not subject to payroll taxes.
• Flexible retirement program - better suited to provide early retirement benefits and other ancillary benefits.

Member advantages

• Members receive a formal promise of a specific pension at retirement.
• Retirement income determined by an established formula based on years of service and income.
• By naming a beneficiary, any death benefit is paid directly to the beneficiary with no need for probate.
• Creditor-proof - to the extent provided for under applicable legislation, pension plan contributions and benefits cannot be seized by creditors.

The Simplified Pension Plan (SPP) is a defined contribution pension plan administered neither by an employer nor a pension committee but by a financial institution. Only Québec, Manitoba and The Office of the Superintendent of Financial Institutions (OSFI) have adopted rules allowing SPPs for employees of employers subject to their jurisdiction.

Sponsor advantages

• Standard Life assumes plan administration.
• Control over plan's variable provisions.
• Cost control - contributions are often set as a percentage of payroll.
• Contributions and plan administration expenses payable and paid by the sponsor are tax deductible.
• Employer contributions are not subject to payroll taxes.
• Some of the SPP contributions will only be available to provide retirement income.

Member advantages

• Employer contributions contribute to produce a retirement income.
• Early investment yields more investment income.
• Dollar cost averaging reduces investment risk.
• Group buying power - higher interest rates and favourable investment management fees.
• By naming a beneficiary, any death benefit is paid directly to the beneficiary with no need for probate.
• Creditor-proof - to the extent provided for under applicable legislation, pension plan contributions cannot be seized by creditors.

An Individual Pension Plan (IPP) is a defined benefit pension plan. It provides senior executives and business owners with the opportunity to achieve maximum tax relief combined with maximum retirement pension. The IPP is a sound business decision for both entrepreneurs and executives who have the income to support a more aggressive tax deferral arrangement.

Standard Life makes the administrative and reporting responsibilities of the sponsoring company less burdensome.

To qualify for an IPP, a member must:

• have T4 income.
• be an employee of an incorporated company which is taxable under the Income Tax Act (ITA).
• be age 40 or more and earn a minimum of $75,000 from the company sponsoring the IPP.

Sponsor advantages

• Guaranteed lifetime income - the IPP offers a predictable retirement income.
• Tax advantages - all contributions and administration expenses payable and paid by the plan sponsor are tax deductible.
• Tax deductible contributions are often larger than under an RRSP.
• Past service funding - for executives and high earner, the IPP funding formula may, under certain circumstances, recognize past service and be more generous than RRSP.
• Ownership of plan assets - depending on the plan rules and ITA restrictions, any actuarial surplus at retirement may be granted to the member.

A Group Registered Retirement Savings Plan (RRSP) is a collection of individual RRSPs where routine administration is centralized. Plan Sponsors are not required to contribute to the Group RRSP. It offers members special benefits, such as favourable interest rates and lower investment minimums, which they would not normally receive individually.

Sponsor advantages

• Plan design flexibility.
• Can be used in conjunction with a pension plan or Deferred Profit Sharing Plan (DPSP).
• Flexible eligibility rules.
• Administration expenses paid by sponsors are tax deductible.
• Reduced government reporting.
• Cost control - available on a no-fee basis.
• No requirement for employer contributions.

Member advantages

• A convenient, disciplined savings program through payroll deduction.
• Immediate tax reductions.
• Early investment yields more income.
• Dollar cost averaging reduces investment risk.
• Group buying power - higher interest rates and favourable investment management fees.
• Income-splitting possibilities.
• By naming a beneficiary, any death benefit is paid directly to the beneficiary with no need for probate.
• Flexibility at termination and retirement - immediate vesting with no locking-in rules.

Registered tax-favoured retirement plans like RRSPs and pension plans offer employees a basic foundation for future income security – within limits.

The Non-Registered Savings Plan (NRSP) is designed for "excess" contributions... that is, the amounts above and beyond government RRSP and pension limits. This plan lacks the tax-sheltering associated with registered plans, but retains many of the same product features as its registered counterpart.

Sponsor advantages

• Plan is designed to meet the specific savings needs of the members.
• Control and flexibility over eligibility requirements and contribution levels.
• Hassle-free administration.
• No need to register with government authorities.
• Cost incurred by the sponsor in the administration of the plan are tax deductible.

Member advantages

• A convenient, disciplined savings program through payroll deduction.
• Where applicable, members benefit from sponsor contributions.
• No locking-in rules.
• Dollar cost averaging reduces investment risk.
• By naming a beneficiary, any death benefit is paid directly to the beneficiary with no need for probate.
• Creditor-proof - to the extent provided for under applicable legislation, pension plan contributions and benefits cannot be seized by creditors.

A Deferred Profit Sharing Plan (DPSP) is a simple, flexible arrangement whereby a plan sponsor distributes a portion of the company's pre-tax profits. Specified shareholders (i.e., individuals who own, directly or indirectly, more than 10% of company stock) are excluded. Employees do not contribute to the plan.

Sponsor advantages

• Plan design flexibility.
• May be set up in conjunction with a Payroll Deduction RRSP or a pension plan.
• Contributions are not required in unprofitable years.
• All contributions and administration expenses payable and paid by the sponsor are tax deductible.
• Flexible contributions - the sponsor has ample freedom to reward according to member performance.

Member advantages

• Deferred, tax-sheltered compensation.
• Contributions vest in members after at least two years of plan participation with no locking-in rules, unless withdrawals are prohibited for active members.
• At termination or retirement, contributions can be cashed-out, or used to purchase an annuity or a Registered Retirement Income Fund (RRIF) or RRSP.
• By naming a beneficiary, any death benefit is paid directly to the beneficiary with no need for probate.
• Group buying power - higher interest rates and favourable investment management fees.

An Employee Profit Sharing Plan (EPSP) is an arrangement under which a plan sponsor pays a portion of the company's profits to a trustee to be held and invested for the benefit of the member. Unlike a DPSP, members must pay tax each year on the contributions and plan income allocated to them.

Sponsor advantages

• The sponsor retains control and flexibility over eligibility and vesting requirements as well as contribution levels.
• Contributions and any plan administration expenses payable and paid by the sponsor are tax deductible.
• Hassle-free administration.
• Reduced government reporting.

Member advantages

• Sponsor contributions.
• Dollar cost averaging reduces investment risk.
• By naming a beneficiary, any death benefit is paid directly to the beneficiary with no need for probate.
• No locking-in rules.

A Retirement Compensation Agreement (RCA), is a vehicle used to fund supplementary retirement benefits outside a Registered Pension Plan. Sponsor contributions and investment earnings are subject to a 50% refundable tax.

Sponsor advantages

• Employer contributions are tax deductible and not subject to payroll tax.
• An RCA can play an important role in attracting and retaining high caliber employees.

Member advantages

• Members receive a formal promise of a retirement benefit.
• Members are only taxed when they receive retirement income from the plan.
• By naming a beneficiary, any death benefit is paid directly to the beneficiary with no need for probate.
• Creditor-proof - since plan assets are separate from company assets, they are protected from the plan sponsor's creditors.

The Structured RRSP (STRP) provides a systematic method of allocating plan sponsor and member contributions in separate accounts under the umbrella of a single registered retirement savings plan.

For tax purposes, the plan sponsor's contributions are treated as though they were member contributions added to members' earnings and earmarked as additional member contributions. (Note, this may increase CPP/QPP, EI and WC contributions and benefits.)

Sponsor advantages

• Plan design flexibility.
• Hassle-free administration.
• Reduced government reporting.
• Tax deductions - indirect sponsor contributions or any administration expenses payable and paid by the sponsor are tax deductible.

Member advantages

• A convenient, disciplined savings program.
• Sponsor's contributions.
• Immediate tax reductions.
• Early investment yields more income.
• Dollar cost averaging reduces investment risk.
• Income-splitting possibilities.
• Group buying power - higher interest rates and favourable investment management fees.
• Flexibility at termination and retirement - immediate vesting with no locking-in rules.
• By naming a beneficiary, any death benefit is paid directly to the beneficiary with no need for probate.
• Creditor-proof - to the extent provided for under applicable legislation, pension plan contributions and benefits cannot be seized by creditors.

Deciding on what form of income to receive at retirement can be confusing and intimidating. By December 31st on the year they turn 71, members are required to convert their registered savings into income. Standard Life offers a wide range of annuities to offer flexibility in the conversion of registered assets to income at retirement including a variety of guarantee periods and single and joint life options.

Sponsor advantages

• Comfort in knowing that members will continue to be taken care of by the professionals at Standard Life.
• Seamless integration into the retirement program.
• No additional costs or administrative burden.

Member advantages

• Support by salaried Retirement Specialists to make this important transition.
• Members continue to have access to all of the tools and services they have become familiar with.

A seamless transition from the members group accumulation program to a RRIF or LIF is available. By December 31st on the year they turn 71, members are required to convert their registered savings into income. One of the most popular income streams is the RRIF, for assets coming from an RRSP, or LIF, for assets coming from a locked-in Retirement Account - LIRA, locked-in RRSP or Pension Plan.

Once you convert your registered accumulation assets to an income stream RRIF or LIF you will be required to withdraw a prescribed mandatory minimum payment each year. This minimum amount depends on a number of factors including whether you have a spouse and his or her age. There is no maximum annual withdrawal limit, except for money in a LIF. Withdrawals over the minimum amount are subject to a withholding tax.

Sponsor advantages

• Comfort in knowing that members will continue to be taken care of by the professionals at Standard Life.
• Simple integration into the retirement program.
• No additional costs or administrative burden.
• Competitive rate structure ensures that members hard earned retirement assets are working for them.

Member advantages

• Support by salaried Retirement Specialists to make this important transition.
• Members continue to have access to all of the tools and services they have become familiar with.
• In most cases, continuation of the same investment funds.
• A very competitive rate structure compared to individual programs.