Products & Services

Individual Pension Plans

A registered Individual Pension Plan (“IPP”) from TT Actuarial is tailored to the requirements of the individual and their corporation and will enable maximum allowable sheltering far beyond that available in a simple Registered Retirement Savings Plan (“RRSP”).

These plans allow for maximum efficiency in the management of costs, and can be structured for flexibility like an  RRSP.

TT Actuarial creates personalized plans that allow for maximum flexibility for funding with several options to maintain the efficiencies of a plan upon retirement.

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Accumulate over 75% more in your registered, tax-deferred retirement savings fund with an Individual Pension Plan

An Individual Pension Plan (“IPP”) is a defined benefit Pension Plan that is registered with the federal and provincial governments and will allow you to accumulate and make significant contributions to your personal retirement fund above and beyond what is possible with a standard RRSP.

Contribution amounts are calculated by an accredited Actuary and are determined by actuarial valuations at three year periods in order to maintain the integrity of the plan and thereby provide enough assets to pay a pension upon retirement that will last your lifetime.

Who are they right for?

Key executives, business owners and incorporated professionals are usually good candidates for an IPP as they have consistent and significant income. Only T4 income is pensionable, dividend income is not pensionable.

How do you set up an IPP?

By law a certified and accredited Actuary needs to be retained as Plan Actuary. In most cases these are usually third party service providers, as the Actuary needs to remain independent from the investment and custodial function. The plan actuary makes calculations based on the age, gender, past service years with the sponsoring company (if applicable) and the T4 income history of the individual. The Actuary will also draft all required plan documents and register the plan with the various levels of government.

IPP contribution amounts

Contribution amounts are calculated using your T4 (pensionable earnings) your age; gender and planned retirement date. From this information the Actuary uses mortality tables and estimates for future scenarios with interest rates, average industrial wage increases, management expenses and other variables to make the actuarial assumptions acceptable to CRA and the Canadian Institute of Actuaries.


Once you retire you will have a choice of different retirement scenarios, including drawing a monthly pension, converting to an annuity or a Life Income Fund.

Significant benefits of IPPs:

» Much greater contributions allowed to the individual’s registered retirement fund

» Much greater tax deductions for the sponsoring corporation

» Significant tax-deductible contributions at retirement

» Additional tax-deductible contributions can be made in the event of lower investment returns

» Individual retains ownership of pension plan and its surpluses

» Ensures accurate estimations of retirement benefits for easier and more effective estate planning and succession management

» Pension assets are 100% creditor-proof

» No deemed disposition of plan assets upon death. All assets can remain in the plan to provide benefits to surviving members or spouse

» Enables company to deduct all costs associated with the maintenance of the plan, including investment, custodial and actuarial fees

The IPP enables higher annual contributions resulting in a larger retirement fund and more accurate retirement income forecasting easing tax, estate and succession planning.

IPP and RRSP comparison

Contributions to pension plans are determined partially by age, the older you are the more you need to contribute now in order to provide funds upon retirement. As such IPP contributions first start to exceed those of RRSPs around age 40.

Funding the pension plan

The sponsoring company funds the pension plan on behalf of the employee or member based on the recommendations of the Actuary. An actuarial plan valuation is required by government every three years. This ensures the plan is accumulating the assets necessary to provide the future pension for the expected life of the member. Shortfalls in plan assets due to unexpected consequences may allow further contributions. All funding for a pension plan is tax-deductible to the sponsoring company. There is some flexibility to funding times and amounts.

Personalized IPP projections

You may obtain a personalized IPP projection from TT Actuarial at no charge.