• Group Registered Retirement Savings Plans (Group RRSP)
• Deferred Profit Sharing Plan (DPSP)
• Defined Contribution (DC) Pension Plan

You may also consider adding one of the following supplemental plans:

• Group Registered Education Saving Plan (Group RESP)
• Group Non-Registered Payroll Saving Plan

Regardless of the plan you choose, you will benefit from the respected investment management and services provided by Mackenzie. Our diverse fund line-up contains the ideal tools for building financial independence and preserving wealth over the long term.

Group RRSP

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

• Plan sponsor contributions are completely voluntary
• Plan sponsor has full control over member eligibility and determining and adjusting plan sponsor contribution amounts
• Plan sponsor and member contributions can be made in any combination but cannot exceed an individual’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 subjected to payroll taxes
• A Group RRSP is easy to set up, operate and if necessary, modify or terminate
• Spousal accounts are available
• Contributions as low as $50 per month per fund can be allocated to any of the more than 100 mutual funds offered by Mackenzie
• The minimum plan size is three members

Deferred Profit Sharing Plan (DPSP)

• Only plan sponsor contributions are allowed in the plan
• Plan sponsor contributions are not subject to payroll taxes
• Plan sponsor’s contributions are tax-deductible and are not taxable to the member until paid out
• Plan sponsor contributions are limited to the lesser of 18% of the members’s compensation of the year from the plan sponsor or a dollar limit equal to one-half of the defined contribution pension plan limit (2008 - $10,500)
• Plan sponsor may impose a vesting period of up to two years of plan membership
• Any non-vested amount forfeited by a terminating member must either be allocated to other plan members or refunded to the plan sponsor no later than the end of the year following the year in which the amount was forfeited
• Withdrawals can be restricted to termination, death and retirement
• Terminated memberss can withdraw the full vested amount subject to taxation
• Creates a Pension Adjustment (PA)
• Can be used to share profits with members
• A DPSP must be registered with the Canada Revenue Agency (CRA) and must comply with the terms and provisions of the Income Tax Act and regulations
• The minimum plan size is three members

Note: Connected persons* cannot participate in the DPSP.

* Connected person includes an individual who owns directly or indirectly 10% or more of the issued shares of any class of the capital stock of the Plan Sponsor or any other corporation related to the Plan Sponsor, who does not deal at “arms length” with the Plan Sponsor as defined in the Income Tax Act, or is a specified shareholder of the Plan Sponsor under paragraph (d) in subsection 248(1) of the Income Tax Act. A connected person also includes any individual connected by blood, marriage or adoption to such a person.

Defined Contribution (DC) Pension Plan

DC Pension Plans are formal arrangements made by a sponsor in order to provide members with a monthly income at retirement. Legislation requires the plan sponsor to contribute to the plan. If the member is also required to contribute, the plan is referred to as a contributory plan; otherwise it is called a non-contributory plan.

• The contribution formula is clearly defined (minimum plan sponsor contribution is 1% of Pensionable Earnings)
• Plan sponsor contributions are not subject to payroll taxes
• All contributions in the plan are tax-sheltered until the member begins to take income at retirement
• After the contributions vest, all monies are locked in
• The plan sponsor may impose a vesting period of up to two years of plan membership but immediate vesting is mandatory in Quebec
• No redemptions are allowed from the plan
• Plans are creditor-proof
• Creates a Pension Adjustment (PA)
• A plan document is created outlining the rules and requirements of the plan including contribution rate(s), the eligibility period, and vesting period
• The minimum plan size is three members

Supplementary Plans

To attract and retain good members, consider helping them reach other goals in life. Whether your members are setting money aside for a large purchase or saving for their children’s education, Mackenzie offers plans that can help.

Group Registered Education Savings Plan (Group RESP)

• Group RESPs are a popular way for members to save for their children’s education.
• Contributions are not tax-deductible, but RESP investments grow tax-free until the beneficiary withdraws the funds for post-secondary school expenses.

Group Non-Registered Payroll Savings Plans

• A Group Non-Registered Payroll Savings Plan deducts contributions straight from your company’s payroll to invest in a suitable Mackenzie mutual fund.
• Members’ savings are always accessible and have the potential to grow considerably faster than they would in a savings account.