Group Retirement Plans

Backed by over 60 years of experience, iA is an industry leader when it comes to group retirement plans. Our clients from across Canada count on our extensive experience in the administration of group retirement plans, in asset management for defined benefit plans and for pension benefit payment services.

An advisor can help you to determine your needs.

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Plans

DC RPP

A plan where both you and your employees contribute a predetermined amount equal to a percentage of their salary.

A plan where both you and your employees contribute a predetermined amount equal to a percentage of their salary.

Upon retirement, your employees will have access to the sum of the contributions made to their Defined Contribution Registered Pension Plan (DC RPP) account plus any return generated by these contributions.

For your employees, a DC RPP offers an added value to their group benefits because you are required to contribute as well.


Furthermore, by entrusting the administration of your DC RPP to us, you are relieved of several administrative tasks. 

Advantages for the employer

  • Amounts accumulated are only for retirement 
  • Contributions and administrative expenses are tax-deductible
  • No payroll taxes on contributions 
  • Employee recruitment made easier and retention reinforced

Advantages for the employee

  • Employer is required to contribute to the plan 
  • Tax-sheltered contributions and investment income until payout 
  • Payroll deductions make saving easier 
  • Immediate tax refund 
  • Creditor protection

SPP *Quebec and Manitoba only

A plan administered by a financial institution where both you and your employees make contributions.

A plan administered by a financial institution where both you and your employees make contributions.

The Simplified Pension Plan (SPP) is particularly suited to the reality of SMEs. By entrusting the administration of your SPP to us, you are relieved of several administrative tasks.

Advantages for the employer

  • Amounts accumulated are only for retirement 
  • Contributions and administrative expenses are tax-deductible
  • No payroll taxes on contributions 
  • Streamlined administration 
  • Employee recruitment and retention made easier

Advantages for the employee

  • Employer is required to contribute to the plan 
  • Tax-sheltered contributions and investment income until payout 
  • Payroll deductions make saving easier 
  • Immediate tax refund 
  • Creditor protection

Group RRSP

Offers a simple and effective way to encourage your employees to save for their retirement.

Offers a simple and effective way to encourage your employees to save for their retirement.

The Group Registered Retirement Savings Plan (RRSP) is a combination of several individual RRSPs. Your employees may contribute through payroll deductions or by preauthorized payments, which will allow them to save and benefit from tax advantages.

Employers may contribute to a group RRSP. Your contributions are then subject to payroll taxes and are immediately vested.

Advantages for the employer

  • Simple administration 
  • Employer is not required to contribute 
  • Employee salaries are tax deductible 
  • Flexibility in plan design 
  • Not subject to pension plan legislation 

Advantages for the employee

  • Tax-sheltered contributions and investment income until payout 
  • Contributions are tax deductible
  • Immediate tax savings at source
  • Unused contribution amounts can be carried forward 
  • Payroll deductions make saving easier 
  • Contributions can be made in a spouse’s name 
  • Immediate vesting of employer contributions 

LIRA

A Locked-In Retirement Account (LIRA) is a product that is specially designed to receive the amounts acquired under a registered pension plan or simplified pension plan, for example upon termination of employment. It is not possible to contribute to a LIRA, nor is it possible, in general, to make withdrawals before retirement.

Advantages of a LIRA

  • Investment income accumulates tax-free 
  • Various investment options

DPSP

Offers you substantial cost savings and provides employees with the opportunity to profit from your company’s success.

Offers you substantial cost savings and provides employees with the opportunity to profit from your company’s success.

The Deferred Profit Sharing Plan (DPSP) allows you to distribute a portion of your company’s profits with some or all of your employees.

Thanks to the great flexibility of this plan, you can decide to choose to contribute only when your company generates profits in a fiscal year.

Only the employer may contribute to a DPSP. You can combine it with a group RRSP to encourage employees to save for retirement and commit to match their contribution in a DPSP.

Advantages for the employer

  • More control than with a group RRSP
  • You are not required to contribute if the company is not profitable 
  • Tax-deductible contributions that do not generate payroll taxes 
  • Not subject to pension plan legislation 
  • Possibility of limiting withdrawals until the employee leaves 

Advantages for the employee

  • Employer contributions are not taxable and grow tax-free in an account 
  • Access to company profits
  • Investment income accumulates tax-free until payout 
  • Possibility of withdrawals before retirement

Group TFSA

Offers your employees an ideal savings tool to complement an RRSP.

Offers your employees an ideal savings tool to complement an RRSP.

Contributions made to a Tax-Free Savings Account (TFSA) are not tax deductible. However, any income generated and withdrawals are tax-free.

Employers may contribute to a group TFSA. Your contributions are subject to payroll taxes and are immediately vested.

Advantages for the employer

  • Savings vehicle to complement an RRSP 
  • Simple administration 
  • Employer is not required to contribute 
  • Employee salaries are tax deductible 
  • Flexibility in plan design
  • Not subject to pension plan legislation 

Advantages for the employee

  • Investment income accumulates tax-free and does not affect benefits paid by federal programs 
  • Money can be withdrawn tax-free and redeposited over the following years 
  • Unused contributions can be carried forward 
  • Payroll deductions make saving easier 
  • No age limit to make withdrawals

VRSP *Quebec only

Developed in particular for employers who do not offer a group retirement savings plan and for self-employed workers.

Developed in particular for employers who do not offer a group retirement savings plan and for self-employed workers.

The Voluntary Retirement Savings Plan (VRSP) is a simple, flexible and low-cost solution.  Eligible employees are automatically enrolled in the plan by their employer.

Advantages for the employer

  • No required contribution
  • Simple administration
  • Contributions are tax-deductible
  • No payroll tax on contributions
  • Quick and easy to set up

Advantages for the employee

  • Automatic and voluntary plan enrolment
  • Payroll deductions make saving easier/li>
  • Low cost, regardless of the employer
  • Contributions and investment income grow tax-free until payout 
  • Amount or percentage of contribution is adjustable
  • Possibility to continue contributing to the VRSP even if you change employer 

Find out more about the VRSP.

The iA VRSP

PRPP

For employees working under federal jurisdiction. Participation is voluntary.

For employees working under federal jurisdiction. Participation is voluntary.

The Pooled Registered Pension Plan (PRPP) is a federal plan that offers investment and savings opportunities at low administrative costs.

Participation is voluntary. If you choose to participate, your contributions are immediately vested.

Advantages for the employer

  • Amounts accumulated are only for retirement 
  • Simple administration 
  • Less expensive than a DC RPP  
  • Employer is not required to contribute 
  • No payroll tax on contributions  

Advantages for the employee

  • Contributions and investment income accumulate tax-free until payout 
  • Payroll deductions make saving easier 
  • Immediate tax refund 
  • Creditor protection

IPP

Tailored to business owners and executives looking to optimize their retirement income.

Tailored to business owners and executives looking to optimize their retirement income.

Retirement income generated by an Individual Pension Plan (IPP) is generally higher than that generated by an RRSP and the annual contribution amount is established by an actuary based on factors such as age or income.

Advantages for the employer

  • Significant tax savings  
  • Retention of key employees 
  • Potentially easier to sell the company because of decreased shareholder equity 

Advantages for the employee

  • Plan financed by employer 
  • Greater savings than with an RRSP 
  • Possibility of personalizing provisions such as indexation, early retirement and bridging benefit
  • Guaranteed retirement income  
  • Investment income accumulates tax-free 
  • Creditor protection 

After retirement, sums accumulated are not taxable if the annuity is paid out of the plan.

Find out more about the IPP.

Asset management mandate

Asset investment service for defined benefit pension plans administered by a third party.

Asset investment service for defined benefit pension plans administered by a third party.

In addition to taking care of investing the assets of your defined benefit pension plan, we also manage your employees’ retirement benefit payments.

Our team of experts manages over $75 billion in total assets for iA Financial Group. Count on us to guide and support you in your fiduciary responsibilities.

By entrusting us with an asset management mandate, you benefit from:

  • Expert advice in actuarial, management, investment as well as custodial services
  • Direct support from a dedicated investment specialist assigned to your account whose role is to offer the best investment solutions available to meet your objectives
  • Access to some of the most well-known and respected fund managers in the industry
  • A rigorous selection process and monitoring of all managers
  • A specialized and dynamic asset management approach that maximizes returns while minimizing investment risk
  • Financial reports and high-performance management tools that ensure sound management of your pension fund

Choosing a plan

Find the plan that’s right for you.

Check out our comparison chart

Annuities

Insured annuities

Provides your employees with guaranteed income for life or for a specific period of time.

Provides your employees with guaranteed income for life or for a specific period of time.

iA Financial Group insures pension plan annuities in whole or in part for a single premium from the pension plan. In this way, the insurer accepts responsibility for paying the plan members’ lifetime annuities according to the terms in the contract. The group size can vary from just a few plan members, to hundreds or thousands. 
There are two main types of insured annuities contracts:

Buy-out annuities

  • The insurer assumes responsibility for paying plan member annuities covered by the annuities purchase and the pension plan administration
  • The employer dispenses with the risks associated with the plan member annuity payments covered by the annuities purchase

Buy-in annuities

  • The insurer assumes responsibility for paying plan member annuities covered by the annuities purchase
  • The buy-in annuities contract becomes an asset of the pension plan
  • The employer remains responsible for administering the pension plan
  • The buy-in annuity contract can be converted into a buy-out annuity contract to transfer the pension plan administration to the employer

RRIF

Is the natural extension of an RRSP and provides access to savings accumulated during a working life.

Is the natural extension of an RRSP and provides access to savings accumulated during a working life.

With a Registered Retirement Income Fund (RRIF), it is possible to periodically withdraw a portion of the accumulated amounts, while continuing to grow savings on a tax-free basis.

Advantages of a RRIF

  • Periodic retirement income 
  • Investment income remains tax sheltered until withdrawn 
  • No maximum  withdrawal

LIF

Designed for people who have savings in a LIRA or in a pension plan.

Designed for people who have savings in a LIRA or in a pension plan.

Similar to a RRIF, the Life Income Fund (LIF) allows you to withdraw a retirement income. Furthermore, the LIF is subject to both a minimum and a maximum annual withdrawal.

Advantages of a LIF

  • Periodic retirement income
  • Investment income remains tax sheltered until withdrawn