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
Montreal area:
1-800-363-3072 Phone number to set up a group retirement savings plan for the Montreal area. This link opens your phone app.
Quebec City area:
1-877-828-7800 Phone number to set up a group retirement savings plan for the Quebec City area. This link opens your phone app.
Help with an existing plan
Monday to Friday: 8 AM to 8 PM
1-888-510-4762 Phone number for customer service for group retirement savings. This link opens your phone app.