Often used as stock purchase plans, EPSPs are generally structured so an employer can match some or all of an employee's contributions to the plan. EPSPs are not registered, so there are no legislated vesting provisions and employee contributions are allowed.

Employer contributions to an EPSP are taxable to the employee and, because they are not registered, growth is not tax sheltered. EPSPs are not considered a retirement plan and should not be relied upon as such.

• Maintain RRSP contribution room. Contributions to EPSPs by you and your employer will not reduce your RRSP contribution room.

• No vesting and locking-in provisions. However, there may be other conditions attached. Depending on the plan design, you may be able to withdraw these funds any time after the vesting period subject to federal withholding taxes.

• Stock-purchase option. The option to purchase stocks may help you gain direct ownership of your company.

• Employer matching. Many employers will match your contribution to an EPSP as additional compensation.

Note: EPSPs are not offered by Mackenzie and MRS.