EXECUTIVE PENSION PLAN OVERVIEW

Everything You Need to Know About the E-PP™

E-PP — Executive Pension Plan for Incorporated Business Owners

The E-PP (Executive Pension Plan) is a pension fund designed for incorporated entrepreneurs and incorporated professionals seeking an alternative to the RRSP that offers stronger performance and greater tax advantages.

Following the 2018 Morneau reform, several income accumulation and income-splitting strategies were restricted. The E-PP stands as a structured retirement planning solution for SMEs, allowing a business owner's retirement to be integrated into the company's overall financial strategy.

Tax advantages of the E-PP

Contributions made by the corporation for the benefit of the business owner
Contributions fully tax-deductible for the corporation
No payroll taxes applicable to contributions
Tax-sheltered accumulation within a corporate pension fund structure

The E-PP thus supports tax optimization for incorporated entrepreneurs while maximizing retirement savings accumulation.

For business owners looking to structure their corporate retirement strategically, the E-PP represents a solution suited to the realities of small and medium-sized businesses.

WHY CHOOSE AN E-PP™?

KEY BENEFITS

Employer contributions not subject to payroll taxes
Corporate deduction for management fees
GST/QST exemption on plan-related fees
Institutional investment platform
Competitive investment and actuarial fees

HIGHER CONTRIBUTIONS THAN RRSPs

Current service contributions higher than the RRSP limit
Special payments (course correction):
- Recognition of past service
- In the event of an actuarial deficit (e.g., returns below 7.5%)
- Terminal funding at retirement

ADDITIONAL TAX BENEFITS

Potential for intergenerational transfer
Helps maintain access to the small business deduction
Tax planning tool for the sale of your business
Retirement income splitting with a spouse or common-law partner
Pension income tax credit

HOW IS IT STRUCTURED?

Defined benefits

The defined benefit component for annual contributions exceeding the RRSP limit, as well as balancing contributions such as the purchase of past years of service.

Defined contributions

The defined contribution component, designed for the young entrepreneur looking to establish a flexible retirement vehicle for their entire career.

Additional voluntary component

The additional voluntary contributions component, designed to complement the strategy and transfer existing RRSPs.