ICPP Basics

As a Member, you will define and save for the income necessary to meet your basic retirement needs. You may also select and save for other optional retirement income targets. The ICPP is designed with several targeted benefit payout options:

Individual Lifestyle Maintenance Benefit: The Individual Lifestyle Maintenance Benefit is the primary benefit offered under the ICPP. It is designed to meet Canadians’ basic needs in retirement, when combined with their Old Age Security (OAS) and Canada Pension Plan (CPP). This benefit is intended to provide inflation protected payments during the Member’s, and the Member’s Spouse’s, entire lifetime. The Individual Lifestyle Maintenance Benefit is provided through an uninsured variable annuity. You will be asked to establish a targeted amount for your Individual Lifestyle Maintenance Benefit.

Extra Lifetime Income Benefit: The Extra Lifetime Income Benefit allows a Member, typically a high income Member, to target an additional fully insured pension payable for the Member’s, and the Member’s Spouse’s, lifetime. This benefit is completely discretionary and payable once your targeted Individual Lifestyle Maintenance Benefit is fully funded.

Minimum Taxable Benefit: The Minimum Taxable Benefit is the final benefit payable under the ICPP. It is designed to ensure that the total benefit paid to a Member each year respects the Income Tax Act requirements. This benefit is provided through any remaining funds after the targeted Individual Lifestyle Maintenance Benefit and the targeted Extra Lifetime Income Benefit are fully funded.

Appropriate levels of Employer and Member contributions are established to reasonably support a Member's selected retirement income targets in advance. Contribution levels can be adjusted as necessary to reflect emerging ICPP experience.

A Member of the ICPP receives regular information, updates and support to determine if their current contributions remain sufficient to support their selected retirement income objectives. You may change contribution levels, benefit targets or expected retirement dates at any time.

Investment mandates are designed to collectively support a Member’s accumulation phase and the payout phase for any selected retirement income target. Transitioning from the accumulation phase fund to the payout stage funds is automatic and triggered by your expected retirement date(s). Learn more about how we invest.

Income payouts targeted to meet your basic retirement needs are provided through the Variable Payment Life Annuity (VPLA) with investment pooling.  Other payouts in retirement are fully insured.

What To Expect

On enrolment, a plan Member must make a few simple decisions. The Member is then provided with tools and support to monitor the results and can make changes as needed. Members will decide:

When can I reasonably expect to retire?


What are my expected retirement needs?

Should I target more than the minimum to meet my basic needs?

Will I contribute more than the minimum set by my employer?

Should I transfer any existing registered savings into the ICPP?