Simplified Pension Plan

Available only in Quebec

Since the adoption of the Supplemental Pension Plans Act, the Simplified Pension Plan (SPP) gives employers even more flexibility to set up plans that are suited to both themselves and their employees, particularly in terms of contributions and how they are locked in.

With the Simplified Pension Plan (SPP), employers can offer their employees a retirement plan while keep the related fees and paperwork to a minimum, an additional benefit that will help you attract and keep good employees.

Features

• Defined Contribution Pension Plan.
• For the real needs of SMEs, small and medium-sized public and parapublic organizations.
• Relief from the administration and responsibilities that usually belong to the employer and retirement committee.

Advantages for your organization

• An SPP is as easy to set up as a regular group RRSP, but contributions are not considered when calculating fringe benefits (e.g.: QPP and EI contributions).
• Tax break: contributions and administration fees are tax deductible.
• Easy to manage: you send us the contributions and inform employees of their eligibility for the plan.
• The support and expertise of Desjardins, who manages your plan, which represents substantial savings.
• Motivating for employees because they take an active role in saving for their future.
• You set up the parameters of the plan, particularly as regards the eligibility requirements for your employees, as well as the employer and employee contributions.
• Employer contributions are locked in. As soon as they are paid, they belong to participants and are earmarked for their retirement.

Advantages for your employees

• Immediate tax break: contributions are deducted from their gross salary.
• Participants choose in which financial products to invest.
• Additional contributions allowed.
• Contributions and income are not seizable¹.

Participants will not be able to withdraw money deposited into their locked-in account before retirement or when they stop participating in the plan, apart from certain exceptions. However, if their locked-in account balance is available, they will be able to make full or partial withdrawals at any time.

Companies with 350 employees or less
	By phone (Members and non-members)	Montreal area: 514-286-3100, ext. 2576 Elsewhere in Canada and the U.S.: 1-800-361-6840, ext. 2576
	At the caisse (Members and non-members)	Make an appointment with an advisor at a caisse.
	At a Desjardins Business Centre (Members and non-members)	Make an appointment with an account manager at a Desjardins Business Centre.
Companies with more than 350 employees
	By phone (Members and non-members)	1-866-565-3145

1. Except for cases of partition of family patrimony or child support.