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Deferred profit sharing plan (DPSP)

What is a DPSP?

With a DPSP, you can share a portion of your company's profits with your employees. This kind of plan is often combined with a group RRSP.

Advantages

For employers

  • Helps drive employee engagement
  • Contributions and operating costs are tax-deductible
  • Provides flexibility and discretion in terms of employer contribution amounts

For employees

  • Gains grow tax-free
  • Accumulate savings without having to make contributions
  • Variety of investment options to choose from

Contributions

Employer

  • Minimum contribution amounts based on previous years' profits
  • Owners with at least 10% stake in company shares aren't eligible for plan

Employees

  • No employee contributions
  • Employer contributions vested after no more than 2 years

Details

Administration

  • Plan needs to be registered with Canada Revenue Agency
  • Administered by trust
  • No annual meeting required
  • No regulatory fees

Investments

  • Either employees or administrator responsible for investment choices
  • No investment policy required

Contact us

Setting up a plan

Montreal area:
1-800-363-3072 Phone number to set up a group retirement savings plan for the Montreal area. This link opens your phone app.

Quebec City area:
1-877-828-7800 Phone number to set up a group retirement savings plan for the Quebec City area. This link opens your phone app.

Help with an existing plan

Monday to Friday: 8 AM to 8 PM

1-888-510-4762 Phone number for customer service for group retirement savings. This link opens your phone app.

Discover other group savings plans

Group TFSA

A group tax-free savings account (TFSA) is a type of savings plan in which contributions aren't tax-deductible, but the income they generate is tax-free.
Learn more about Group TFSAs.

Group RRSP

A group registered retirement savings plan (RRSP) is a collection of individual RRSPs offered to a group of employees.
Learn more about Group RRSPs.
Desjardins Financial Security Life Assurance Company acts as an issuer, service provider or administrator, as the case may be, of the group retirement savings plans.
This text is for information purposes only. Refer to the policy for all conditions, exclusions and restrictions.