Frequently Asked Questions

The ICPP is a Multi-Employer, Collective Defined Contribution (DC) Pension Plan. The ICPP is registered as a pension plan under the Income Tax Act and the Ontario Pension Benefits Act.

The ICPP uses a Multi-Employer Plan framework. This means that any Canadian employer can sign into the ICPP, giving their employees access to a reliable lifetime pension. There are no limits on how many employees a company must have in order to participate in the ICPP.

In order to join the ICPP, employers sign a Participating Employer Agreement. With the help of our pension consultants, Participating Employers will then select a minimum default Ideal Benefit for employees and determine appropriate contribution levels. Employers are also responsible for submitting the appropriate member data we need to administer the plan. We work with you to ensure the enrolment process is as simple and streamlined as possible.

After an employer joins the ICPP, our pension consultants will provide clear communications on next steps for employees to successfully enroll in the plan. All new members of the ICPP will attend a presentation delivered by our pension consultants explaining the Plan in detail and answering any questions. New members are also provided with a detailed Member Booklet and access to a Personal Pension Portal containing helpful information about the ICPP. Members will complete an Enrolment Form and a Benefit Preference Form where they can indicate their Expected Retirement Age and select any additional Benefit Targets in addition to the default Ideal Benefit selected by their employer. Based on this information, our pension consultants will provide an initial pension statement and determine appropriate contribution levels for a member to meet their retirement goals. Members can also reach out to Member Support at any point during the enrolment process if they have questions or concerns.

Our pension consultants make switching to the ICPP as easy as possible, with little disruption to employers or members. We also waive any of our fees associated with transitioning to the ICPP.

The ICPP was designed by pension experts as a direct response to the shortcomings of typical workplace retirement arrangements in Canada, which can be burdensome to employers and ultimately fail to provide sufficient financial security to members in retirement.

Participating Employers in the ICPP enjoy an outsourced solution that greatly reduces the administrative and fiduciary responsibilities associated with pension plans. They also reap the benefits of offering real retirement security to their employees, which helps to attract and retain top talent and ensures employees retire on the appropriate schedule.

For members, the ICPP has many features that make it more advantageous than traditional Defined Contribution (DC) pension plans or Group RRSPs. Members can expect: lower fees resulting in bigger payouts for the same contribution levels; lifetime payments that ensure they don’t outlive their savings; expert support during their working years and in retirement; and worry-free retirement planning.

The ICPP offers flexible contribution arrangements to align with a Participating Employer’s total compensation philosophy and can accommodate any appropriate level of company required, company matching, employee required, employee optional, or employee discretionary contributions. The ICPP requires an initial minimum Employer contribution of 1% of a Member’s regular earnings. Total contributions into the ICPP must be a minimum of 3% of a Member’s regular contributions and limited to the maximum permitted to a registered pension plan under the Income Tax Act.

Contribution levels are related to the default Ideal Benefit Target selected by a Participating Employer. Our professionals assist each Participating Employer is setting the appropriate Ideal Benefit Target and corresponding contribution level.

A Participating Employer will determine the contribution formula upon signing into the ICPP.  The contribution formula will reflect the Participating Employer’s total compensation philosophy.  For instance, a Participating Employer may wish to require its members to contribute up to 3% of earnings, while the employer will make a required 3% of earnings contribution and match the employee’s contribution at 100%, for a total of 9% of earnings contribution. In another example, the Participating Employer may elect contribute 5% of earnings and their employees may contribute any amount up to the Income Tax Act Limit.

Any contribution formula can be adopted subject to the Plan minimums and pension legislation. The contribution formula is designed to be flexible to match each Participating Employer views on employee compensation, rewards and benefits.

The current all in cost for the ICPP is approximately 0.55% to 0.60% per year of assets under management.  These fees include all investment management services, administrative services, and governance services in connection with the operation of the pension plan.

In comparison, typical fees charged to mid-size retirement plan sponsors range between 1.00 to 2.00% per year of assets under management for traditional Defined Contribution plans and Group RRSP.  This excludes the internal time and cost of proper plan governance and oversight of any third party service providers.

Investment expenses matter when accumulating retirement savings. Member fees payable from the ICPP are 50% less than typically charged under small to mid-size employer Defined Contribution arrangements and 70% less than typically available in the Canadian retail sector. This leads to significantly larger retirement benefits for members of the ICPP compared to most typical retirement solutions available to the Canadian private sector.

As membership in the ICPP grows, fees are expected to shrink even further. Currently, fees are approximately 0.55% per annum of assets under management, with the goal of reducing fees to approximately 0.30% per annum of assets under management once the ICPP is fully mature.

Participating Employers can expect ongoing expert support from our pension consultants that make having a workplace pension plan as hassle-free as possible. Employers simply enroll members, remit contributions, and advise of employment changes. We take care of the rest. Employers will receive regular communications on the performance of the plan to ensure their employees are receiving the best retirement outcomes possible.

Members receive regular communications about their personal savings and any important plan updates. Members can login to their online pension portal at any time to access their pension statements, enrolment forms, and other plan information such as their Member Booklet and instructional videos. Members can also reach out to our support team if they have questions or concerns, or would like to make changes to their Benefit Targets, Contributions, or Expected Retirement Date.

The ICPP is unique in that its members continue to receive support during their retirement years. Retired members can reach out to our support team at any time with questions or concerns. Additionally, retired members continue to receive regular pension statements and are advised on appropriate withdrawal levels to ensure they are not receiving too much or too little of their pension to provide for lifetime payments.

Current members of the ICPP can contact us at support@idealcanadianpensionplan.ca or call us toll-free: 1-866-265-5694. You can also login to your personal pension portal to access your latest pension statements and member information.

General inquires can be directed to info@idealcanadianpensionplan.ca or toll-free: 1-866-265-5694.

At retirement, a member will receive option forms from the ICPP administrator providing choices on how they can receive their retirement income. The member can elect to receive a monthly income amount expected to be payable for their lifetime. The ICPP has been specifically designed to optimize this income and ensure Members don’t have to worry about outliving their savings. Members may also elect to receive a lump sum transfer from the ICPP to another registered savings vehicle.

What makes the ICPP unique is that our Members, if they elect to receive a monthly pension, remain in the plan after retirement. This means they are able to continue to reap the benefits low fee investing, timely expert support, and professional investment management. This is different from typical Canadian Defined Contribution plans, whose members have to “go it alone” in retirement.

One of the primary downfalls of traditional Defined Contribution arrangements is the risk of spending too much, or too little of your pension over your lifetime. The ICPP mitigates this risk with payout strategies designed to provide appropriate payments for a Member’s entire lifetime.

Continued participation in the ICPP during retirement ensures members receive professional support and communication to appropriately manage longevity risks. Members are given ongoing expert advice on recommended withdrawal levels within personal Life Income Funds to ensure legislated minimums and maximums are respected.

Members of the ICPP will receive lifetime payments from a Variable Payment Life Annuity (VPLA). This innovative new retirement income vehicle is designed to provide variable income during a Member’s retirement based on the experience of the underlying investments and collective mortality. Members share their longevity risks in this account.

Yes. Members of the ICPP may continue to participate in the plan during retirement. This ensures members continue to receive expert support and guidance. Retired members also reap the benefits of asset pooling and low fees.

Members continue to receive the same high level of support in retirement that they did during their working years. This includes direct access to the ICPP’s member support team. Retired members also receive advice on appropriate withdrawal levels and regular updates on the status of their account. Retired members are also represented on the ICPP Management Board.

Members of the ICPP can change their Expected Retirement Date at any time. Should a member elect to retire earlier than originally anticipated, our pension consultants will provide advice on appropriate withdrawal levels based on the member’s current asset levels. You can retire as early as age 55.

Members of the ICPP can change their Expected Retirement Date at any time. Should a member elect to retire later than originally anticipated, our pension consultants will provide advice on appropriate contribution levels in relation to the new retirement timeline and the member’s Benefit Targets. Members can delay retirement up until December 1 in the year in which they attain age 71 in accordance with applicable tax legislation.