Offer your clients the Ultimate Tax Sheltering Vehicle
By encouraging your clients to save through an INTEGRIS PPP® instead of an RRSP, Accountants are providing another tax-efficient way of accumulating a sizeable nest egg for retirement with pre-tax dollars. Accountants will also be asked to prepare the pension accounting elements of the client's corporate financial statements as a result of the move into a pension plan.
The PPP® provides for additional savings that complement any existing dividend splitting strategy that has been adopted by your client.
Rest assured that the amazing staff at INTEGRIS are here to support you and your client's needs every step of the way.
5 Tax Deductions
Yes, both Corporate and Employee contributions can be deducted on tax returns.
Administration and Investment Management Fees
Yes. Under general tax rules of eligible business expenses and CRA administrative rules.
Yes. If assets in pension fund do not grow at the rate prescribed by the CRA, these payments can be amortized over a 5-year Period or can be paid in a lump sum.
Buy Back of Past Service
For DB component of plan only Provides corporate sponsor with the ability to claim an additional Tax deduction in the year of contribution for the purchase of past Service.
For DB component of plan only Provides corporate sponsor ability to claim an additional tax Deduction at the time of retirement when additional benefits (indexing, CPP bridge, early unreduced pension) are purchased
Get started with a Distributor account and start offering the INTEGRIS PPP® to your clients today.Get Started
Training & Support
Excited with everything about the INTEGRIS PPP® but you prefer to have a more academic understanding of Personal Pension planning before offering it to your clients?
The top accountants often do — that's why we created the INTEGRIS University.
In light of the new tax rules that penalize passive investments within CCPCs, advisors must understand how pension legislation can become a powerful tool to deal with wealth succession, business succession and tax optimization within a corporate environment.Learn More
Over 20 years, the PPP® member could have over $1,000,000 more in registered assets to retire on (assuming the same rate of return on assets as earned in an RRSP).
There are 7 new types of tax deductions inside a PPP® that you cannot find inside an RRSP:
- Greater annual deductions ranging from $1,896 at age 40 to $18,481 by age 64 and beyond
- Terminal funding to enhance the basic pension (up to $2,000,000 deduction)
- Corporation’s ability to make tax-deductible contributions to assist in the purchase of past service
- Special Payments (also tax-deductible) if the pension plan’s assets don’t return 7.5%
- Interests paid to lenders for contributions made to the PPP® are tax-deductible
- Investment management fees paid on any asset inside the PPP® are tax-deductible
- Annual administration and actuarial fees are tax-deductible
Assets inside a PPP® are trade-creditor protected.
Required contributions to the PPP® owed by the corporation are provided super-priority in bankruptcy and rank above secured creditors like the banks.
Assets inside a PPP® can pass from generation to generation without triggering a deemed disposition. Also, because the funds do not end up in the estate, there are no probate fees if other family members are also members of the PPP®.
Ability to increase tax deductible contributions past the age of 71 via special payments.
Corporate sponsor can claim back 100% of GST or HST levied against PPP fees from the CRA via input tax credits.
IPPs (Individual Pension Plans) must cease all taxdeductible contributions if they are in excess surplus (in excess of 25% of liabilities). However, accruals can continue which will use up the surplus, and contributions to an RRSP can be made which can then be transferred to the PPP’s AVC Account.
Additional tax savings opportunity upon set-up: members aged 38 and under who paid $100,000, for example, in the year of plan set-up could make an $18,000 PPP® contribution and an $18,000 RRSP, assuming no earned income in the year 1990.
Unlocking: not only are AVC assets unlocked at all times (by eliminating the AVC provisions from the plan text), but by reducing accrued benefits and creating surplus, additional funds can be withdrawn.
Participating life insurance add-on: the large tax savings/refunds created by the multitude of additional tax deductions could be used by the corporation to purchase an limited-pay overfunded Participating life insurance policy with the corporation designated as the death beneficiary, thereby funding the policy with $0.00 cost
Early retirement: available as early as age 50, with pension income-splitting and $4,000 worth of pension being eligible for the pension amount non-refundable credit. RRIF (Registered Retirement Income Fund) income-splitting only starts at age 65.
Flexibility: being able to switch between a DB (Defined Benefit) and a DC (Defined Contribution) plan every year helps control pension costs. But the superior tax deductions afforded by DB plans aren’t lost in a DC year since the plan can be amended to convert DC into DB years (and allow for a past service contribution). Click here for a full breakdown of the advantages of the PPP® vs IPP
Fiduciary and Governance: INTEGRIS offers a ‘pension committee’ service to ensure compliance and supervision with pension officers, compliance staff and lawyers at no extra cost
Purification for life time capital gains exemption: deductions created inside the company when purchasing past service, borrowing or doing terminal funding/special payments, can purify a corporation for this special tax exemption ($883,384 in 2020).
In our practice, we've stayed away from an IPP because it was too cumbersome and lacked flexibility but now with INTEGRIS' PPP®, everything is simplified, it addresses the concerns business owners had with IPPs and we see an increase in assets under management for our firm.
— Dallas De Carlo, Director of Wealth Management
Frequently Asked Questions
The advisor receives their usual commission (e.g. 100 bps) as they would for any retirement plan account such as an RRSP, TFSA, IPP etc.
Ongoing client relationship management and asset management is taken care of by yourself while ongoing back-end reporting and fiduciary oversight are taken care of by INTEGRIS and its back-office partner(s).
INTEGRIS looks after billing the fee payable to INTEGRIS.
No. However, as with any other financial product, you must usually have either an LLQP, IIROC, MFDA or other securities licence to transact in securities. If you refer the investment mandate to a discretionary portfolio manager, no licence is required at all.
The company or Professional Corporation sponsors the plan. The trustees hold the assets on behalf of the members and their beneficiaries. No one truly ‘owns’ the pension plan, since it is a bundle of liabilities/promises and corresponding assets.
Yes, our pension lawyers and actuaries can be retained to provide special consulting services on pension related issues.
No, you do not, however, you will need an employment relationship with a T4 income to qualify.
A Limited Partnership, General Partnership, Joint Partnership (example, law firm) or even a Sole Proprietor could offer a PPP to its employee (ie. wife, kid) if the employee is receiving T4 income. However, the partners themselves or the sole proprietor would not be eligible for a PPP. Why? because they cannot employ themselves and pay themselves T4 income.
Yes, corporate clients who contribute to the Defined Benefit component of the PPP will be granted an extension of 120 days from the fiscal year end of the company to make the contribution and still have it deductible against corporate revenues earned during the company's fiscal year
For setting up a new PPP®
- Accountant completes the ‘Illustration Request Form’
- Accountant reviews illustration with an INTEGRIS Onboarding Specialist
- Accountant reviews illustration with the client
- Client makes payment to show commitment
- Complete the INTEGRIS PPP® ‘Set Up Form’
- Submit supporting documents (T4s, articles of incorporation, IDs, NOAs etc.)
- Client signs the legal documentation prepared by INTEGRIS
- Funding begins once plan is registered (approx. 6 weeks)
For upgrading an IPP to PPP®
- Gather all PPP® info
- Sign plan amendment
- Send to CRA
- Use the existing IPP account as the PPP® DB account
- Open PPP® DC account
- Open PPP® AVC account
- Continue funding