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.

• EPSPs have advantages in disposition of sole proprietorships, and may assist in financing a company through stock purchases.
• Contributions are tax deductible for the employer.
• A stock purchase option can allow employees to gain direct ownership in the company, long considered important for employee morale and commitment.

Note: EPSPs are not offered by Mackenzie and MRS.