Private Capital Markets

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.