Mackenzie offers a comprehensive selection of group plans designed to meet a variety of objectives, including saving for retirement, sharing company profits or accumulating funds for a major outlay such as a child’s post-secondary education.

Mackenzie offers the following group plans:

• Group Registered Retirement Savings Plan (RRSP)
• Deferred Profit Sharing Plan (DPSP)
• Defined Contribution (DC) Pension Plan
• Group Registered Education Savings Plan (RESP)
• Non-Registered Payroll Savings Plan
• Individual Pension Plan (IPP) (through MRS Inc. an affiliated company of Mackenzie Financial)

You will also find Additional Sources where you can access links to detailed information about Pension Plans.

Retirement Plans

Group Registered Retirement Savings Plans (RRSPs)

A Group RRSP is simply a collection of individual RRSPs where members (employees) make contributions through payroll deductions. Members realize instant tax savings because contributions are deducted from earnings before taxes are calculated.

• Plan sponsor contributions are completely voluntary
• Plan sponsor has full control over member eligibility and can determine and adjust plan sponsor contribution amounts
• Plan sponsor and member contributions can be made in any combination but cannot exceed an individual member's personal RRSP limit
• Plan sponsor contributions are a deductible expense for the plan sponsor in the year in which they are made
• Plan sponsor contributions "vest" immediately and are not "locked in"
• Plan sponsor contributions are treated as a taxable benefit and therefore are subject to payroll taxes
• A Group RRSP is easy to set up, operate, and if necessary, modify or terminate

Deferred Profit Sharing Plans (DPSPs)

DPSPs offer a supplement to a company's Group RRSP. A plan sponsor may contribute any amount out of profits or retained earnings, up to legislated maximums, into a member’s DPSP account where contributions and earnings are sheltered from income tax until withdrawn.

• Only plan sponsor contributions are permitted
• Contributions must be made out of profits or retained earnings
• Plan sponsor contributions are not subject to payroll taxes
• No mandatory minimum contribution
• Maximum contribution is limited to the lesser of 18% of earned income or a dollar limit equal to one-half of the defined contribution pension plan limit
• Vesting period of up to two years of plan membership
• Contributions to a DPSP create a Pension Adjustment (PA)
• Withdrawals can be restricted until termination, death or retirement
• Connected persons* are not permitted to participate in a DPSP
• One time set up fee of $250. This fee is waived if an existing plan is moved to Mackenzie and has total assets of $250,000 with average assets per member of $10,000

*Anyone who owns at least 10% of any class of the company’s shares or does not deal at arm’s length with the plan sponsor or anyone who is related to that person through marriage, adoption or blood.

Defined Contribution (DC) Pension Plans

In a DC Pension Plan, the contributions are defined, but the pension benefits are not. A plan sponsor contributes a fixed percentage or dollar value, of the member's pay and the member may also contribute a fixed amount as outlined in the plan document.

The pension derived from a DC Pension Plan depends on the contribution amounts, investment performance, number of years of contributions, and many other factors.

• Plan sponsor contributions are not subject to payroll taxes
• Minimum plan sponsor contribution is 1% of pensionable earnings
• Can have a vesting period of up to two years of plan membership (immediate in Quebec)
• After contributions vest, all monies are locked in
• Contributions to a DC Pension Plan create a Pension Adjustment (PA)
• No redemptions are permitted
• Plans are potentially creditor proof
• One time set up fee of $500. This fee is waived if an existing plan is moved to Mackenzie and has total assets of $500,000 with average assets per member of $20,000
• Provincial regulatory fees apply and vary from province to province. Click regulatory fees for a full list

Group Registered Education Savings Plan (Group RESP)

• Investments compound tax-free as long as they remain in the plan
• Contributions to the plan are made directly from payroll
• Withdrawals of earnings and grants – Educational Assistance Payments (EAPs) – are taxed in the hands of the student
• The member is able to choose their holdings from a wide range of investment options
• Canada Education Savings Grant (CESG) contributes 20% on the first $2,500 an individual contributes to an RESP each year
• Additional CES Grant Program is available for families who earned less than $37,884 in 2008 may receive an additional 20% on the first $500 contributed
• Families who earned less than $75,769 in 2008 may receive an additional 10% of the first $500 contributed
• If someone is unable to take advantage of the full grant in one year, a series of catch-up RESP contributions may be eligible for the Grant, up to a maximum of $1,000 annually and a lifetime maximum of $7,200
• Canada Learning Bond (CLB) is available to modest income families with children born after December 31, 2003. For families who qualify, the total grant available for a child could amount to $2,000

Group Non-Registered Payroll Savings Plan

• Contributions to the plan are made directly from payroll
• Contributions are not subject to contribution limits
• Taxes are payable on any gains from the plan
• No plan sponsor contributions are required
• May be set up for employees who are saving for an upcoming purchase (i.e., a vacation, new car, etc.)

Individual Pension Plans (IPPs) – the Basics

IPPs are alternative retirement savings vehicles that allow for enhanced tax relief and increased pension benefits above and beyond those available through RRSPs and other retirement plans. They can be set up for one person or for a group of employees within the same company.

• IPPs are suitable for individuals who are 45 years of age and older
• Individual’s T4 income from their company must be $123,184 or more (2008)
• Individuals must have historically maximized their Registered Retirement Savings Plans (RRSPs) and pension contributions
• There must be an established employer-employee relationship
• A typical IPP will produce a maximum pension adjustment similar to that of most other pension plans, so going this route means that there may be no further room for RRSP contributions

Note: Individual Pension Plans require actuarial services and valuations not provided by Mackenzie.