Deferred profit sharing plan (DPSP)

What is a DPSP?

With a DPSP, you can share a portion of your company's profits with your employees. This kind of plan is often combined with a group RRSP.

Advantages

For employers

Helps drive employee engagement
Contributions and operating costs are tax-deductible
Provides flexibility and discretion in terms of employer contribution amounts

For employees

Gains grow tax-free
Accumulate savings without having to make contributions
Variety of investment options to choose from

Contributions

Employer

Minimum contribution amounts based on previous years' profits
Owners with at least 10% stake in company shares aren't eligible for plan

Employees

No employee contributions
Employer contributions vested after no more than 2 years

Details

Administration

Plan needs to be registered with Canada Revenue Agency
Administered by trust
No annual meeting required
No regulatory fees

Investments

Either employees or administrator responsible for investment choices
No investment policy required

Contact us

Setting up a plan

1-800-361-2189 This link opens your phone app.

Help with an existing plan

1-888-510-4762 This link opens your phone app.

Discover other group savings plans

Group TFSA

A group tax-free savings account (TFSA) is a type of savings plan in which contributions aren't tax-deductible, but the income they generate is tax-free.

Group RRSP

A group registered retirement savings plan (RRSP) is a collection of individual RRSPs offered to a group of employees.

Desjardins Financial Security Life Assurance Company acts as an issuer, service provider or administrator, as the case may be, of the group retirement savings plans.

This text is for information purposes only. Refer to the policy for all conditions, exclusions and restrictions.