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Employee Retirement Programs
Group RRSP | Deferred Profit Sharing Plans | Individual Pension Plans | Registered Pension Plans
Deferred Profit Sharing Plan
A Deferred Profit Sharing Plan (DPSP) can be an effective tool to assist with retirement savings as well as focus employee attention on your bottom line.
Employees may be enticed to improve both individual and group performance since their efforts help generate company profit and a portion will be distributed under the DPSP.
Successful motivation of your staff depends on tailoring contributions to the unique needs of your organization. The allocation of funds to employee accounts can be arbitrary or follow a contribution formula, using the following variables:
- percentage of profits,
- fixed dollar amount per employee,
- percentage of payroll,
- occupational class,
- seniority,
- matching employee contributions to a RRSP or a pension plan
Benefits to the Employer
- Contributions are not added to employees' earning and do not increase payroll taxes
- Contributions and expenses are tax-deductible to the employer
- Increase productivity
- Retains employees with vesting
- Flexibility
Benefits to the Employee
- Can contribute to overall success of the company with ability to profit from their contribution
- Ability to invest proceeds as they wish
If your company is interested in setting up a DPSP, please contact our office at 1-866-466-4745.
