Types of Retirement Plans

The right plan for your company should fit its organizational culture, management philosophy, financial situation and employee attributes. It should provide a wide variety of investment choices, the flexibility to consider individual needs and circumstances, deliver superior service and help employees reach their long-term financial goals. With the benefit of our knowledge, experience and advice, you can optimize the advantages of the plan - or combination of plans – most appropriate for your company’s needs.

Using products and services from a wide variety of service providers, we can customize a program for your company from the following plan types:

Group Registered Retirement Savings Plans (Group RRSPs)
Group RRSPs are the most flexible and least regulated type of plan. They are also typically the easiest and least costly for a company to administer. Group RRSPs accept both tax-deductible employee and optional employer contributions.

Individual Pension Plans (IPPs)
IPPs are retirement savings vehicles designed to allow for higher tax-deductible contributions and accelerated tax-free growth of retirement assets, when compared to conventional alternatives such as RRSPs. They are defined benefit pension plans that are designed for high-income earning executives and incorporated professionals.

Deferred Profit Sharing Plans (DPSPs)
DPSPs permit employees to share in their company’s success through employer contributions. DPSPs allow employers to establish vesting requirements and/or withdrawal restrictions, plus avoid incremental payroll taxes on company contributions.

Defined Contribution Pension Plans (DCPPs)
DCPPs are a formal and structured arrangement providing employers with considerable control. Since they are more complex and costly to administer than alternative plans, they are favored by employers who want to be sure that contributions are used solely for retirement purposes.

Group Registered Education Savings Plan (GRESP)
Group RESPs allow employees to conveniently save for a child’s post-secondary education. Although contributions are not tax deductible, Group RESPs provide tax sheltering of investment growth as well as a government grant worth up to 20% of an employee’s annual contribution to a maximum of $500 per year per child and to a lifetime limit of $7,200 per child.

Group Savings Plan (GSP)
GSPs are usually offered as a supplemental non-registered savings vehicle in conjunction with another group retirement plan where tax deductible employee contribution limits are exhausted. GSPs typically involve employee contributions only.

Plan Types Comparison
Each of the group retirement plan types has unique features. No one plan is better than another, or suitable for all situations. View a comparison.

For more information, contact an Investment Advisor at a BMO Nesbitt Burns branch near you.

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