Simplified Pension Plan (SPP)

•  The SPP is a multi-employer plan, which reduces administrative costs. 

•  Contributions and administrative fees are tax deductible. 

•  As the SPP is a defined contribution plan, the employer does not assume any financial risk. The annuity depends on the total amount accumulated in the participant’s account at retirement.

•  The employee is responsible for providing investment instructions, not the employer. 

•  Participants can receive an immediate tax refund on their payroll contributions. 

•  Contributions are vested immediately. 

•  Voluntary contributions may be withdrawn before retirement or when the employee leaves the company, if the employer has given prior consent.