Fact Sheet - Moving from an IPP to an INTEGRIS PPP (Trust platform to Trust platform)

Originally posted on Jun 02, 2015
Share on:
Fact Sheet - Moving from an IPP to an INTEGRIS PPP (Trust platform to Trust platform)

Legally, in order to transfer an established IPP from its current provider to an INTEGRIS PPP, the steps will depend on the platform (insurance or trust) on which the pension plan is established and the platform to which it will be moving. Generally, where an IPP moves from a trust platform to a PPP structured on a trust platform, the following steps must occur:

1.           The company sponsoring the IPP provides written termination notice to their current actuary stipulating the effective date of termination of actuarial services.

2.           The company signs an Actuarial Appointment Letter appointing INTEGRIS as the actuarial service provider for the PPP.

3.           The company and the plan member signs the INTEGRIS Agency Agreement with INTEGRIS appointing INTEGRIS as the delegated plan administrator of the amended and restated PPP.

4.           The company passes a board resolution adopting the amended and restated PPP which effectively replaces the IPP.

5.           INTEGRIS prepares and file an Actuarial Valuation Report (AVR) on the transfer of the plan over to        INTEGRIS to determine required contributions.

6.           INTEGRIS registers the amended and restated pension plan with the Canada Revenue Agency and the provincial regulator, as required. This is done by INTEGRIS preparing the required CRA Form T920   and any other provincial Plan   Amendment Form as required. In Ontario, this is the Financial Services Commission of Ontario (FSCO Form 1.1).

7.           If the trustee, insurance provider, custodian, and investment manager are to remain the same, no action will be taken except to inform them in writing that the new delegated plan administrator and actuary is INTEGRIS. Their functions in each case will continue unchanged. INTEGRIS will notify the parties.

8.           If the service providers are changed, INTEGRIS will work with the new service providers to ensure a seamless transition and to obtain the legal documentation that establishes the new arrangement.

9.           INTEGRIS, in its role as an actuary and delegated plan administrator will assume all actuarial and administrative functions with full compliance oversight.

Change in Contribution Levels:

10.     As for changes in the contribution level, once the PPP is in place, and that a new actuarial valuation report has been prepared, the member can elect to move from one component to another. The AVR sets out the contribution levels required under the terms of the PPP.

11.     The company will make contributions to the funding agent based on the results of this new AVR.

ppp101 Personal Pension Planning For Corporate Owner-Managers

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 about the ppp101 course
Online Course