Simplified Pension Plan

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.