Employer retirement plans: DCPP, PRPP, DPSP and GRSP

Use this form to review and edit an employer-sponsored retirement account. It covers Defined Contribution Pension Plans (DCPPs), Individual Pension Plans (IPPs), Pooled Registered Pension Plans (PRPPs), Québec Voluntary Retirement Savings Plans (VRSPs), Deferred Profit Sharing Plans (DPSPs) and Group Retirement Savings Plans (GRSPs).

The fields shown will change automatically when you change the account type.

If contributions are still being made through employment, select the employment INCOME associated with the plan. The employment income must already have been created in INCOMES.

The TIME MACHINE uses the selected employment income, its start and end dates and the contribution percentages entered below to calculate contributions to the account.

The available employment incomes belong to the selected account owner. If you change the owner, make sure you also select the correct employment income.

If no employment income is selected, the plan is treated as locked-in. No employee or employer contributions will be calculated, and the contribution percentages will be saved as 0.

Enter the percentage of the selected employment income that the employee contributes to the plan. The TIME MACHINE will deposit this amount into the account while the linked employment income is active.

This field is not shown for a DPSP because contributions to a DPSP are made by the employer.

Enter the percentage of the selected employment income contributed by the employer. Enter only the employer’s portion and not the combined employee and employer contribution.

Depending on the account type, employee and employer contributions will either be included in the Pension Adjustment or reduce available RRSP contribution room. The TIME MACHINE applies the treatment appropriate to the selected plan.

When the linked employment income ends, the TIME MACHINE will stop employee and employer contributions.

• A DCPP is treated as becoming a LIRA.
• A PRPP, DPSP or GRSP is treated as becoming an RRSP.

The account retains its name and investments after the conversion. You do not need to create a separate future LIRA or RRSP account.

Enter the age at which the retirement account should be converted to an income fund. The conversion must occur no later than age 71.

• A DCPP or LIRA will generally be converted to a LIF.
• A PRPP, DPSP, GRSP or RRSP will be converted to a RRIF.

The applicable conversion can vary with the pension jurisdiction. For example, the TIME MACHINE treats Saskatchewan locked-in accounts as converting to a RRIF rather than a LIF.

Select the province whose pension legislation governs the plan. This is not necessarily the province where the account owner currently lives.

Select Federal and territories when the plan is governed by federal pension legislation. The TIME MACHINE uses this information when applying locked-in account and withdrawal rules.

If the account owner has a younger spouse, you can choose to use the spouse’s age when minimum withdrawals are calculated after the account becomes a RRIF or LIF. This generally produces smaller required withdrawals.

Make sure this selection agrees with the instructions that will be given to the financial institution or pension administrator when the income fund is established.

Only supported changes are available in the account-type menu. When you select another type, the relevant fields will appear. Information that no longer applies will be cleared when the account is saved.

These retirement accounts cannot be jointly owned. If you have a spouse, you can correct or change the owner.

After changing the account type or owner, review the selected employment income, your AUTOMATIC SAVINGS/WITHDRAWALS and your deposit and withdrawal PRIORITIES. Entries associated with the account may need to be revised.

This field is shown only when the growth rate of the account’s Cash investment has not yet been entered. This commonly occurs with newly imported Wealthica accounts.

To change an existing Cash growth rate or the value and growth assumptions of other investments, select Edit investments.

You can select the owner’s spouse, Estate or eligible dependents as beneficiary. If the spouse is the beneficiary when the owner dies in the TIME MACHINE, the account will transfer to the spouse and continue under the applicable registered-account rules.

When the account is saved, all information applicable to the selected retirement plan is saved together on this page. You will then continue to the account’s investments.