What is an Individual Pension Plan (IPP)?
How are eligible IPP contributions calculated?
DB Plan contributions must be calculated by an Actuary based on the benefit formula, the member’s age and T4 earnings history, and a set of actuarial assumptions. Because the IPP only provides benefits to Specified Individuals, the IPP is termed a Designated Plan. While a Designated Plan, the IPP is subject to maximum funding restrictions. Maximum funding restrictions require the actuary to use ITR-mandated actuarial assumptions. When the IPP is no longer a Designated Plan, the actuary may use his discretion to determine appropriate actuarial assumptions.