Introducing a Personal Pension Plan™ (PPP®) for the Self-Employed!

Pension plans provide the best financial security in retirement, but most self-employed individuals and professionals still do not know that they are available for use. Managing a pension plan is very complex, however, at INTEGRIS we have taken away the complexity of pension plan management so that you, the business owner, can now take advantage of this superior retirement savings option.

If you are self employed, own your own business (e.g. entrepreneur or franchisee) or you are a professional (e.g. accountant, consultant, dentist, doctor, financial advisor, lawyer, etc.) with your own practice, then you should look into this solution.

What is the INTEGRIS PPP®?

The INTEGRIS Personal Pension Plan™ (PPP®) is an individual pension plan (a type of retirement savings vehicle) that allows you to invest money for use in your retirement. It is specifically designed for self-employed individuals or professionals who are looking for a more generous alternative to RRSPs for their retirement. If you are a business owner, an incorporated professional like an accountant, consultant, dentist, doctor, financial advisor, lawyer, etc. or a franchise owner, you are eligible to save for your retirement through the INTEGRIS PPP.

We provide further details on the variety of PPP® advantages below:

 - Higher annual tax deductible contributions with an INTEGRIS PPP® than RRSP

With an INTEGRIS PPP®, you can contribute more towards your retirement than what's allowed with an RRSP. In 2020, the contribution limit in a PPP® ranged from $29,126 - $ 45,711 annually (depending on your age) whereas in an RRSP it was fixed at 27,230 per year. And with the power of compounding, this accumulates to larger savings when you retire.

 - Funding flexibility - an INTEGRIS PPP® allows you to adjust annual contributions

As a business owner, you can adjust your contributions to the INTEGRIS PPP® on an annual basis (at the beginning of each year). You have the option to lower your contributions during downturns in the economy or your business and top up in better financial times. No other pension plan gives you that flexibility! You can even buy back past years of service once the PPP is setup for years when you didn't have a pension plan in place.

 - Assets continue to be invested by your existing financial advisor (not INTEGRIS)

Trust and peace of mind comes with an INTEGRIS PPP®. Since your assets continue to be invested by your existing financial advisor based on your directions. INTEGRIS does have access to your assets.

 - Highest level of creditor protection in Canada

Should you or your business encounter financial difficulties, creditors cannot access your savings in the INTEGRIS PPP® to pay your debts. Your PPP assets are protected and kept safe for your retirement.

 - Ability to invest in non-RRSP eligible asset classes

The rules surrounding the investments of pension plans are more liberal and allow you, if you wish, to invest in asset classes that would be non-RRSP eligible. So, a PPP® could purchase shares of a company (subject to the related party prohibitions) or a piece of land. The big advantages of being able to invest in non-RRSP eligible asset classes are:

  1. you get to diversify away from public markets by accessing private ownership of companies.
  2. private equity is less liquid than RRSPs which means that the companies trying to get investors must generally pay higher returns to attract capital. The rate of return on private equity often far outperforms virtually all RRSP/public securities for the same level of economic activity. To own private equity (with usually higher rates of return), you are not allowed to hold it in your RRSP but it must be held in a non-registered account and is subjected to ongoing taxation. By having the PPP® hold the private equity, any higher than usual returns end up being tax-deferred, since a pension plan is not subjected to immediate taxation.

 - All of the investment, pension management and other related fees in the INTEGRIS PPP® are tax deductible

All fees related to the INTEGRIS PPP® are tax deductible to your business. You can claim them so effectively, you pay less taxes. You can also get back some HST on those fees if you are eligible to claim them.

 - Fiduciary oversight (Pension Committee) and compliance

With an INTEGRIS PPP®, INTEGRIS is appointed as the "Delegated Plan Administrator". This means that INTEGRIS is a fiduciary; it has an obligation to act in your best interest and to oversee the work of the service providers: the trustee(s) or insurer, the actuary, the investment manager, etc. to ensure they all act in accordance with the terms of the pension plan.

 - Ability to pass wealth to the next generation without triggering taxes

If you have an RRSP, and you pass away, the RRSP account balance can roll over on a tax-deferred basis to a spouse. However, if both you and your spouse were to perish at the same time, the RRSP would be subject to a 'deemed disposition' under the Income Tax Act and would be taxed in your estate. This means that any beneficiaries on record (e.g. your children) would only receive a fraction of what you had in your RRSP prior to death. If, however, your children are employed by your company and receive a salary, they could be added as plan members to your existing PPPs.

If both you and your spouse pass away at the same time while you are in retirement (and receiving a pension from your PPPs) the account balance inside the PPPs is considered "pension surplus" since it is not required to continue to pay a pension (you are passed away) and there is no survivor pension to continue payments to (your spouse deceased with you). Surplus can be used to fund the pension entitlements of the surviving plan members (your children who are employed in your company). By operation of law, this surplus is trapped inside of the PPP® and continues to be available to create a pension promise. Since this is not an RRSP, there is no 'deemed disposition' and therefore no immediate tax hit. It is in this context that we say that wealth can pass to the next generation without triggering taxes.

How does the INTEGRIS PPP® work?

INTEGRIS designs, sets-up and manages all aspects of the pension plan. This involves performing all activities related to the pension, actuarial, administrative, compliance and technology aspects of the plan. Since the INTEGRIS PPP® is an investment vehicle for saving for your retirement, all you and your financial advisor need to do, is to specify what investments should go in it.

It should be noted that you and/or your financial advisor have control of where your money is invested. INTEGRIS doesn't manage your investments nor has access to your money but instead manages the investment tool or vehicle through which your money is invested.

INTEGRIS in the media

INTEGRIS's innovative approach to retirement savings for business owners, professionals and franchisees is increasingly being recognized by investment advisors from across the country who are now including the INTEGRIS PPP® in the investment options being offered to their clients. Here are a few instances on INTEGRIS in the media:

Globe Investor: Self-employed? Here's a pension for you, too
Financial Post: Why business owners shouldn't bother with an RRSP
Globe & Mail: No pension plan? A solution for those fending for themselves The Personal Pension Plan advantage for lawyers

Make the call today!

Do you have some questions or need more information, or do you want a personalized illustration to see how an INTEGRIS PPP® will save more for your retirement than an RRSP?

Call your Financial Planner or Accountant and tell them you want more information to setup an INTEGRIS PPP®, or

Call one of our many investment partners and request more information to setup an INTEGRIS PPP®, or

Call us here at INTEGRIS, and one of our Pension Advisors can answer all of your questions and get you started on a smarter way to save for retirement