Simplified pension plan

Available in Quebec only. An SPP is a defined-contribution plan that’s set up for your company but administered by a financial institution.

Advantages

For employers

  • Straightforward administration, handled by Desjardins Insurance
  • Easy to set up
  • Beneficial tax rules

For employees

  • Contribution amounts predictable
  • Immediate tax savings, since contributions deducted at source
  • Contributions accumulate tax-free

Details

Employer contributions

  • Minimum contributions required, and additional contributions an option
  • Locked in until retirement

Employee contributions

  • Permitted
  • May or may not be locked in until retirement (at employer’s discretion)
  • Spousal contributions not permitted

Administration

  • Plan needs to be registered with province and Canada Revenue Agency
  • Regulatory fees paid via Desjardins Insurance
  • No annual meeting required

Investments

  • Employees responsible for their investment choices
  • No investment policy required

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