Neil Carnell
Director, Broker Products
Computershare Trust
Company of Canada
www.computershare.com
Computershare Trust
Company of Canada
is a federally regulated
trust company providing
registered product trustee
services in all jurisdictions
across Canada.
When saving for retirement, Canadians have many
options. One of the more attractive and yet little known
or understood options for independent business
owners and qualified individuals is the Individual
Pension Plan (IPP). In the last issue of Private Capital
Markets magazine (Fall 2015), we discussed how new
regulations are opening up the exempt market to more
investors. IPPs are another vehicle for which exempt
market investors may now be eligible.
What is an IPP?
An IPP is a registered defined benefit pension
plan, established by an employer or business owner
to provide pension benefits for an employee after
retirement that allows the employer to make the
maximum contribution to a registered plan.
Who is eligible for an IPP?
Westcoast Actuaries, an actuarial consulting
firm, advises their clients that they are eligible for
an IPP if they:
• are a shareholder or executive, who is over 40
years of age;
• make more than $100,000;
• own a corporation;
• are an employee, who receives pension-
eligible T4-type employment income from the
employer; and
• have the Board of Directors of the employer
approve the establishment of the IPP.
IPPs in the Exempt Market
By Neil Carnell
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