IPP
Individual Pension Plan
An Individual Pension Plan ( IPP ) is a one-person Defined Benefit Pension Plan (DB Plan) which allows the plan member to build a retirement fund on a tax-deferred basis. With the IPP your employer (most often the company you own) contracts to pay you a certain amount each month after you retire. The company puts money into a pension fund to cover its promise to you. The money is held ‘in trust’ by a financial institution, not by your employer.
It is up to your employer to make sure that there is enough in the pension fund to make payments to you after you retire. The trustees of the pension fund manage the investment, so an IPP must conform to the Canadian Income Tax Act and regulations as well as the requirements of the Canada Revenue Agency (CRA) with respect to Defined Benefit pension plans.
You can transfer your IPP to Fisgard anytime!