Deferred Profit Sharing Plan (DPSP)

The DPSP allows businesses to share a portion of their earnings with some or all employees. The employer may choose not to contribute in years where no profits are recorded. Talk to your account manager.

How the DPSP benefits employers

  • The DPSP is a cost-effective plan that can generate considerable savings for employers.
  • Contributions are paid out of pre-tax business income and are tax deductible.
  • Employers can set a vesting period of up to two years. If a participant leaves the company during the vesting period, contributions are returned to the employer.

How the DPSP benefits employees

  • Contributions made on the participant's behalf are non-taxable and tax-sheltered in an individual account.
  • Accumulated funds are not locked in for retirement. In some cases, funds can be withdrawn in part or in whole during the first two years of membership, depending on the vesting schedule.
  • If participants leave the company, they can withdraw the funds (taxes are withheld at source) or transfer them tax-free into an RRSP, RPP or other DPSP.

Useful Articles

group RRSP
Planning your retirement: Where do you start?
Tips for using RRSPs and TFSAs

Find out more

VRSP

 

Does your company have between 10 and 19 employees?

Learn about the VRSP

SPP

 

Make it easier to manage your employees' group retirement plan

Choose our simplified pension plan (SPP)

Group TFSA

 

Employers: Looking to supplement your retirement savings plan?

Choose our group TFSA