The ICPP Advantage
A better pension plan. Simple as that.
The best elements of pension plan design.
Discover the many features that help make the ICPP an ideal pension solution for our participating employers and our members.
Created By Experts
The ICPP was designed by Canadian pension experts. It is the product of extensive research and years of experience within the Canadian pension industry. The ICPP was created to directly address the shortcomings of modern workplace retirement arrangements, such as Defined Contribution pension plans and Group RRSPs. These plans often fail to secure the financial wellbeing of employees and are cumbersome and expensive for many employers. Our experts incorporated leading pension design concepts from around the world to create a pension plan that would be optimal for employees and employers and ensure more Canadians have access to reliable lifetime income.
Within typical retirement arrangements, members concentrate on accumulating a lump sum of assets, which may or may not be sufficient to support their retirement needs into old age. Members of the ICPP focus on their retirement lifestyle choices, instead of savings and investments, by contributing toward specially designed Benefit Targets. Participating Employers select a default Ideal Benefit for their employees which provides reliable lifetime retirement income. Members can select and save for additional retirement Benefit Targets to meet their personal needs and wants. Once a member has funded their target(s), they can expect to receive their desired retirement income without having to worry about managing their assets and cash flow. Learn more about the ICPP’s flexible benefit targets.
The ICPP is sponsored and administered by a not-for-profit Management Board comprised of Canadian pension experts who oversee plan governance, administration, and third-party suppliers. This independent governance structure effectively eliminates fiduciary risks for individual Participating Employers. It also ensures the ICPP is operated in the best interests of its members. Learn more about the ICPP Management Board.
The ICPP offers automatic low-fee investing of Member accounts. Contributions made to the ICPP are invested professionally and managed collectively. Appropriately designed investment strategies eliminate the need for individual members to determine their risk appetite and safeguards against potential sub-optimal returns. Learn more about how we invest.
The ICPP is a Multi-Employer, Collective Defined Contribution Pension Plan. This innovative framework means many employers can participate in the plan, allowing investments to be pooled together, administration to be harmonized, and expenses to be reduced. As a result, members receive bigger payouts and participating employers enjoy reduced risk and administrative burden. Our collective approach also means small to mid-sized employers have an opportunity to offer their valuable employees a quality pension that would otherwise be too expensive and risky.
The ICPP offers flexible contribution arrangements to align with a Participating Employer’s total compensation philosophy. We can accommodate any appropriate level of company required, company matching, employee required, employee optional, or employee discretionary contributions. Contributions are remitted monthly, allocated to each member’s account, and invested. Member accounts reflect all contributions received and investment earnings.
Members and Participating Employers can expect dedicated expert support every step of the way from our pension professionals. Members receive regular communications and timely ongoing assistance as needed, including during their retirement years. Employers enjoy an outsourced solution that eliminates the costs and administrative burden of managing a pension plan in-house. Learn more about how we support our Participating Employers and Members.
Payouts for a Lifetime
One of the primary downfalls of traditional Defined Contribution arrangements is the risk of spending too much, or too little of your retirement assets 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.