A Member Benefit for CBVs
CBV Institute is pleased to make available to its Members a Personal Pension Plan (“PPP”) program, offered through INTEGRIS Pension Management Corp., an independent pension consultant. As part of this arrangement, CBV Institute has negotiated preferential pricing for CBVs who choose to participate. This program is offered by a third party; CBV Institute is providing this information as a member service and does not endorse or recommend any specific investment product or strategy.
What is a PPP?
A Personal Pension Plan allows an eligible Member’s Canadian-Controlled Private Corporation (CCPC) to make tax-deductible contributions well beyond the limits permitted under RRSP rules to save money for retirement. For CBVs who own their practice or business through a CCPC, this can mean meaningfully greater tax-sheltered retirement savings than an RRSP alone allows. It is not uncommon for PPP members to triple the total tax deductions otherwise offered under RRSP rules over their career.
Who is Eligible
CBVs may be eligible to participate if they are a member in good standing of CBV Institute; a 10%+ shareholder of a CCPC; a recipient of T4 compensation from the CCPC (such as salary or bonus); and under age 72.
Member Pricing
CBVs may choose between two program options with INTEGRIS.
Option A — Select your own portfolio manager to manage the PPP’s assets, and pay INTEGRIS a flat annual administration and actuarial fee of $2,800.
Option B — Use INTEGRIS’s default portfolio manager. The $2,800 annual fee is waived once plan assets exceed $500,000. Even on first dollar invested the investment management fee is set at 1% of assets under management, reflecting group pricing negotiated for CBV Institute members.
Members who select Option B also gain the ability to invest a portion of their plan assets, on a tax-exempt basis, through a Pension Realty Corporation (“PRC”) or a Prescribed Small Business Investment Corporation (“PSBIC”). These structures allow pooled pension assets from other PPPs to be deployed into private real estate, private mortgages, or private equity, subject to restrictions on investments with related parties. A number of CBVs who have PPPs can now create their own tax-exempt investment pools.
Why CBVs Are Considering a PPP
A PPP can offer roughly triple the tax-deductible contribution room available under RRSP rules; the ability for plan assets to pass to family members who are also plan members without the roughly 50% tax typically applied to RRSPs at death; access to alternative asset classes on a tax-sheltered basis through PRC/PSBIC structures; and stronger creditor protection than most personal savings vehicles.
Learn More
CBVs interested in learning more, or confirming current eligibility and pricing, can contact INTEGRIS Pension Management Corp. directly.
Contact INTEGRIS Pension Management Corp. at sales@integris-mgt.com or visit their website at https://www.integris-mgt.com/