At Desjardins Financial Security, we have group retirement plan solutions to suit the needs of every organization. Some of the services available are an array of investment options, an interactive website, extremely qualified group retirement staff and various tools designed for our plan members.
Would you like to learn more about our group savings and retirement products? Check out our
Money-Accumulation Plans
Accumulation plans are plans in which the level of retirement income is not known in advance. It will depend on the level of contributions made to the plan and the return on those contributions.
At Desjardins Financial Security, we offer 4 main types of money-accumulation plans:
Group RRSP
A group RRSP is a collection of centrally administered RRSPs that offer members attractive group rates. The member makes tax-deductible contributions that accumulate in a tax-sheltered fund. The amounts invested in an RRSP are not locked in, which means they can be withdrawn at any time. In addition, members make their own investment decisions. Contributions are deducted directly from member salaries, thereby providing an immediate tax deduction and a higher long-term return, since every contribution is invested the moment it is received.
The advantages of a Desjardins Financial Security Group RRSP:
- Members decide for themselves how much to contribute. There is no minimum investment requirement or limit on interfund transfers.
- Lump sum contributions and transfers from other plans, including locked-in funds, are permitted.
- Members can contribute to RRSPs in their spouses' names.
- Members benefit from a wide variety of Investment Options and fund manager investment strategies.
- Members have access to a complete range of Services to assist them in developing a retirement plan and monitoring its progress.
Defined Contribution Pension Plan (DCPP)
In a DCPP, the employer and employee make contributions that are tax deductible and accumulate on a tax-deferred basis. The administrator of the plan (in Quebec, the administrator is a pension committee) is required to offer a wide variety of investment funds to make the retirement fund grow. In most cases, members provide their own investment instructions for the amounts contributed on their behalf. The funds accumulated in a DCPP cannot be withdrawn before the member retires and must be used to purchase an annuity.
These plans are generally better suited to employers who are concerned with assisting their employees in building an income for retirement.
The advantages of a Desjardins Financial Security DCPP:
We simplify plan administration by providing:
- Expert advice on plan design and on establishing an investment policy, where applicable;
- All documentation as required by law;
- Information meetings with the plan sponsor and plan members;
- A wide variety of Investment Options and fund manager investment strategies;
- A complete range of Services to assist members in developing a retirement plan and monitoring its progress.
Simplified Pension Plan (SPP)
The Desjardins Financial Security Simplified Pension Plan (SPP) is a defined contribution benefit plan we set up on behalf of an employer. We administer the plan and assume the duties that are usually the responsibility of the employer and its pension committee.
Due to its simplicity and low cost, the SPP has always been an excellent alternative for employers who are looking for a retirement product to attract and retain quality employees.
With the adoption of the new regulation to the Supplemental Pension Plans Act, SPPs provide employers with even greater flexibility in setting up a plan that is tailored to their needs and those of their employees. This is especially true with regards to the types of contributions payable and the locking-in of contributions.
SPPs provide more flexibility than other types of pension plans
*DPSP (Deferred Profit Sharing Plan): a DPSP must be set up if an employer wishes to make contributions based on its profits. This type of plan is sometimes added to a group RRSP when an employer wants to allow its employees to contribute to a retirement plan.
The Desjardins Financial Security SPP also offers other advantages:
Attractive tax advantages - An SPP is as simple as a group RRSP to set up, but the contributions are not taken into account when calculating payroll taxes, such as Quebec Pension Plan (QPP) and Employment Insurance (EI) contributions. In addition, all contributions and related administration fees are fully tax deductible.
Simplified Administration - We handle plan administration for the employer, thereby reducing the employer's administrative burden. The employer's obligations are limited remittance of plan contributions and advising employees of their eligibility to join the plan. We take care of the rest.
Benefit from our expertise and lower costs - When it comes to SPPs, Desjardins Financial Security is a pioneer in the industry. Since we assume the responsibilities that would normally be handled by a pension committee and the employer, the employer benefits from our expertise and substantially lower costs, since outside experts are not required to manage the plan.
With the Desjardins Financial Security Simplified Pension Plan you get: savings, simplicity and flexibility
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Plan offered by an insurer that is a pioneer in the SPP industry
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Attractive tax advantages
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Flexible contributions adapted to the needs of the employer and participants
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Implementation and administration fully assumed by Desjardins Financial Security
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Wide array of investment options
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Effective, user-friendly communication and planning tools
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First-rate customer service
Desjardins Financial Security is proud to be a pioneer in the area of Simplified Pension Plans, since the Régie des rentes du Québec authorized the creation of these products in 1994. SPPs offer employers an accessible, effective turn-key retirement solution.
Deferred Profit Sharing Plan (DPSP)
A Deferred Profit Sharing Plan is a savings plan in which an employer distributes a portion of company profits to some or all of his or her employees. Employees cannot contribute to the plan, but they can combine it with other plans offered by the employer that are eligible for salary contributions. Employer contributions are not locked-in until retirement, which means that employees can withdraw all or a portion of the contributions after two years of participation or less, depending on the employer's specifications. Most of the time, employees make their own investment decisions for the amounts that are deposited on their behalf.
This is a very flexible plan for the employer, since it does not involve a permanent financial commitment and the employer does not have to contribute during a financial year in which the business suffers a loss. The advantage of a DPSP is that it provides incentive for employees to work towards the goals and the success of the company. It is directly linked to a company's profit, and money is put towards employee pensions.
In addition, deposits and fees are tax-deductible as operating costs and, like RRSPs, deposits and investment income are tax-sheltered.
The advantages of a Desjardins Financial Security DPSP:
At Desjardins Financial Security, we provide advice on plan design. In addition we offer a wide variety of Investment Options and a complete range of member Services.
Individual Pension Plans (IPP)
An IPP is a defined benefit plan for one person. In a defined benefit plan, it is the benefit amount payable at retirement that is determined in advance and not the level of allowable contributions as in the case of an RRSP.
While each case must be looked at individually, an IPP generally allows you to make greater tax-deductible contributions than an RRSP.
Three types of deductions are possible:
- Ongoing: Each year, it is possible to contribute higher amounts to an IPP than to an RRSP.
- When the plan is first established: You can also contribute amounts for years of service prior to the implementation of the plan.
- At Retirement: At retirement, additional amounts can be contributed to provide the most generous terms possible.
Full Range of Services
An IPP is a registered defined benefit pension plan and therefore subject to applicable legislation and its reporting requirements. Desjardins Financial Security specializes in defined benefit plans and offers you a full range of services, including:
- Consultation on plan design;
- Preparation of all documentation required by regulatory authorities;
- Performance of actuarial valuations at plan set-up and on an ongoing basis;
- Quarterly investment reports for the plan sponsor;
- Annual statement for the participant;
- Pension adjustment calculations;
- Calculation and payment of benefits;
A Wide Array of Investment Options
We also offer a full range of pooled investment funds to meet the needs of every type of IPP investor:
- Guaranteed Funds with varying maturities and competitive interest rates;
- Pooled funds managed by the some of the most reputable investment managers in the country.
In order to take advantage of all an IPP has to offer, participants must normally meet certain criteria. The ideal candidate:
- At least 45 years old;
- Annual T4 income of at least $75,000 from an incorporated company taxable under the Income Tax Act;
- Years of purchasable past service with the same employer.
We can help you determine if a Desjardins Financial Security Individual Pension Plan is right for you. For a free consultation, please contact us at one of the following toll-free numbers:
In all Provinces except Quebec:
1-800-263-9641
In Quebec only:
1-800-363-3072
You can also email us at desjardinsipp@dfs.ca
Fund Management Services
Desjardins Financial Security offers an investment only management product for registered pension assets administered by third parties. It is designed for corporate clients, offering the investment diversity available only through a multi-manager approach. Desjardins Financial Security offers registered plans and an extensive array of high-quality Investment Options, all in one contract.
We also provide the following standard and additional services:
Standard services:
- Information sessions
- Investment policies and strategies
- Regular reports on plan transactions and returns
- Up-to-date information on investments and the state of the economy
Additional services:
- Trust services (internal or external funds)
- Production of administrative reports
- Production of personalized investment reports
Annuity Products
Single Premium Group Annuity (SPIGA)
We offer annuity quotation and purchase services for money coming from Group RRSPs and registered pension plans. We provide:
- Customized options: life or joint and survivors, with or without guarantees
- Competitive interest rates and premiums
Contact our SPIGA team today:
By telephone: 1-877-358-8285
By Fax: 1-877-354-4285
Locked-in Retirement Account (LIRA)
A locked-in retirement account (LIRA), also known in some jurisdictions as a locked-in RRSP, is an investment tool specially designed to receive the amounts acquired under a pension or retirement plan. When workers leave their jobs, the locked-in amounts accumulated in their pension plans can be transferred to a LIRA. As with an RRSP, this financial tool allows a plan member to accumulate income on a tax-deferred basis. Unlike an RRSP, however, funds cannot be withdrawn from a LIRA prior to retirement. In addition, a LIRA must be converted into an annuity, Life Income Fund (LIF), or other type of retirement instrument no later than December 31 of the year the member turns 69.
A LIRA is a good add-on to a group RRSP to consolidate one's savings for retirement. Desjardins Financial Security provides participants with a wide variety of Investment Options and a complete range of Services.