SUPPLEMENTAL PENSION PLANNING SOLUTIONS
A Retirement Compensation Arrangement (RCA) is a trust-based supplemental pension arrangement recognized under the Income Tax Act.
RCF designs RCA-based planning solutions for incorporated business owners, professional corporations, family groups, ownership groups, key employees, and executive SERP obligations.
Individual & Professional Corporation Plans
RRSPWrap™
For owners limited by RRSP contribution rules.
Adds a supplemental pension layer above standard RRSP limits, using corporate funding to help build retirement income that better reflects the owner’s earnings, corporation, and long-term planning objectives.
IPPWrap™
For owners using or considering an IPP.
Coordinates with Individual Pension Plan planning to add an RCA-based supplemental pension layer where the IPP structure alone may not fully address the owner’s retirement income needs.
Individual RCA
For standalone supplemental pension planning.
Creates a corporate-funded RCA structure where the owner does not have an existing RRSP or IPP, designed around the owner’s retirement income entitlement and corporate funding capacity.
Why This Matters for Individual Business Owner Plans
Entitlement-Based Funding
Funding is based on the member’s calculated supplemental pension entitlement, not fixed RRSP or IPP contribution limits.
Beyond Registered Plan Limits
Designed to create supplemental pension room where RRSP or IPP limits may not fully reflect corporate earnings or retirement needs.
Passive Income Planning
Properly structured RCA plan contributions are tax-deductible to the corporation, helping redirect appropriate corporate surplus toward a supplemental pension strategy while supporting planning around passive income, AAII, and the small business deduction grind.
Estate & Family Planning
Because RCA trust assets are held outside the operating company, the structure may help reduce complications around ownership succession, estate freezes, and long-term corporate asset planning.
Private and Group RCA Plans
Family Group RCA
For family-owned corporations with working family members.
Creates a structured RCA plan for business owners and participating family members where retirement income, succession, and family wealth planning need to work together.
Corporate Group RCA
For multiple owners, partners, or shareholder groups.
Coordinates supplemental pension planning across an ownership group or corporate group where more than one person needs a structured retirement benefit.
Target Benefit RCA
For selected key employees or executives.
Creates a targeted supplemental pension benefit for long-serving or high-value employees where retention and/or reward is a priority.
Why This Matters for Private and Group RCA Plans
Working Family Members
Supports supplemental pension planning for active family members across generations, helping align retirement income with each person’s role in the business.
Majority Shareholder Planning
Creates a coordinated supplemental pension layer for ownership groups, including majority shareholders with meaningful corporate earnings and long-term retirement income needs.
Key Employee Retention
Can be used as a golden handcuff strategy for selected executives or high-value employees where long-term retention and reward are priorities.
Target Benefit Design
Allows the corporation to calculate maximum RCA entitlement, per plan member, then choose a practical benefit level based on budget, objectives, and plan member value.
Also available: SERPPlus™ Executive SERP Funding
For organizations with existing or planned executive SERP obligations, SERPPlus™ can help reduce reliance on traditional pay-as-you-go funding and avoid the ongoing costs and limitations of letter-of-credit arrangements. Contact us to discuss whether this approach may be appropriate. Start a conversation about SERPPlus™ →
Common Plan Benefits
Across RCF’s RCA plan designs, these benefits are supported by a structure built around the PENSIONPlus™ funding model.
Plan assets are held in an RCA trust, separate from the corporation.
Benefits are designed with 2% annual indexing.
Corporate contributions are deductible, subject to Income Tax Act rules.
Trust-held assets provide protection from corporate creditors.
All plans are designed with survivor benefits.
PENSIONPlus™ funding supports longevity benefits at no additional funding cost for insurable plan members.
PENSIONPlus
PENSIONPlusTM Funding Model
PENSIONPlus™ is the proprietary funding model at the core of RCF’s RCA-based solutions. It combines RCA trust planning with insurance-based funding through a major Canadian insurance company, supporting survivor benefits, longevity benefits, professional investment management, and long-term supplemental pension security, following CRA guidelines.
Insurance Based Funding
Managed through a major Canadian insurance company.
Survivor Benefits
Supports insured survivor benefits within the plan design.
Longevity Benefits
Provides longevity benefits at no additional funding cost.
What RCF Provides
Across RCF’s RCA-based planning solutions, we provide the technical, administrative, and compliance support required to establish and maintain the plan. This includes entitlement funding and benefit calculations, plan ledgers, formal client report, RCA trust coordination, plan documentation, and legal execution documents.
Next Step
See Whether the Fit Is There
If you are evaluating an RCA Plan for a client or for your own corporation, answer a few questions and we will help determine whether the strategy merits a closer look.