Retirement Compensation Funding



Funding Solutions | PENSIONPlus GIF 

PENSIONPlus GIF - Guaranteed Investment Funding for RCAs

  The Situation:

Are you an owner or key employee of a business? Have you maximized your RRSP contributions? Are you concerned that your RRSP’s will not provide an adequate pension?  You are 10 years or less from retirement, and looking for a secure and guaranteed investment vehicle that is not going to fluctuate with the volatility in the marketplace

Are you looking for a 100% tax deductible solution for your pension needs that is safe from market fluctuations and volatility?

  The Solution: 
  The PENSIONWrap'wraps’ an Retirement Compensation Arrangement (RCA) around the RRSP, MPPP, IPP and/or other registered pension plans to fund the difference between an appropriate pension and income from the registered pension. 

RCFs specially configured PENSIONPlus GIF™ assumes funding for both Primary and Survivor benefits but, reduces the allocation for Survivor benefits and, lowers the performance target for primary benefits. Primary benefits are split between a Guaranteed and a Variable pool of assets. The guarantee is 4% and the net performance objective on the variable pool is also 4%. Any excess performance reduces funding costs. The variable pool is invested in Segregated Funds; Mutual Funds or Portfolio Managed.

It also provides spousal and/or pre-retirement death benefits, a corporate trustee at reduced rates and, eliminates the tax concerns associated with using Split Dollar or Shared Ownership Arrangements with RCAs.  RCAs are defined under subsection 248(1) of the Income Tax Act, which allows 100 per cent tax-deductible corporate dollars to be deposited into an RCA, on behalf of the private business owner and/or key employee. No tax is paid by the owner/employee until benefits are received at retirement.

An MPPPWrap& IPPWrap™ are also available to wrap around Money Purchase Pension Plans and/or Individual Pension Plans.


  This material is for information purposes only and should not be construed as legal or tax advice. Every effort has been made to ensure its accuracy, but errors and omissions are possible. Individual circumstances may vary and specific legal and tax advice is recommended.

This strategy is based on current tax legislation. Future tax changes and market conditions may affect this program


  Related  Resources:   
  Case Study | PENSIONPlus GIF Press Release 

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