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Misconceptions about SPP

Check out this video about three common misconceptions about SPP.

Address Changes

How do I change my address online?

You can change your address online by completing this form.

Beneficiaries

What happens to my money when I die?

If you die before you begin receiving payments from SPP, the funds in your account are paid in a lump sum to whomever you have named as beneficiary. If you die after you retire, the death benefits are paid out according to the pension option selected. See Annuity Options for more information. If you name your spouse as beneficiary of your account, CRA allows death benefits to be transferred, tax-deferred, directly to his or her SPP account or to an RRSP, RRIF or guaranteed Life Annuity. Tax-deferred transfer options are also available if the beneficiary is a financially dependent child or grandchild. Please contact SPP or CRA for further information.

Who can I name as my beneficiary?

You may name whomever you wish as beneficiary. Click here for additional information about naming a beneficiary.

Can I change my beneficiary?

Contributors to SPP may change their beneficiary at any time by notifying the Plan in writing. If you retire under the Refund Life Annuity, you may also change the beneficiary at any time. Click here to download a Change of Beneficiary Form.

Contributions

How do I make my contribution?

Contributions can be made in a number of ways: directly from your bank account using the PAC system on the 1st or 15th of the month; at your financial institution using a contribution form; using your VISA or MasterCard; through online banking; or by mail to the Plan office in Kindersley.

SPP also provides the option to make your contribution online using your VISA or MasterCard.

Do I have to contribute the same amount each year?

SPP is designed to be very flexible and to accommodate your individual financial circumstances. There is no minimum contribution. Even contributing $10 per month will build your SPP account and provide you with additional pension at retirement. The maximum contribution is $2,500 per year subject to available RRSP room. There is no minimum contribution.

When did the contribution limit change to $2,500?

The maximum contribution was changed to $2,500 effective December 7, 2010 for the 2010 tax year.

Can I transfer money into SPP?

SPP accepts transfers, up to $10,000 per calendar year from RRSPs and unlocked RPPs. See Transfers to SPP for more information. Please use this form to initiate a transfer of funds to SPP.

Check out our quick video about transfering funds to SPP.

Can I repay my Home buyers' plan (HBP) withdrawal by contributing to the Saskatchewan Pension Plan (SPP)?

The HBP is a program that allows you to withdraw funds from your RRSPs to buy or build a qualifying home.

Plan members can make repayments to their HBP using contributions to SPP but they are limited to $2,500, the annual maximum contribution permitted to SPP. The taxpayer can designate all or part of the contribution as a repayment on Schedule 7 and file it with their tax return. SPP does not track repayments to the HBP.

Amounts designated cannot be deducted as an RRSP contribution and therefore have no effect on RRSP room. Spousal contributions cannot be made for the purposes of HBP repayment.

Further information regarding the HBP is available on the CRA website.

Similar repayment opportunities apply to the Lifelong learning plan (LLP) and SPP contributions. CRA has additional information available here.

What are the implications of contributing to SPP if you live outside of Canada?

Even if you are a non-resident of Canada, you may be eligible to contribute to SPP as long as you still have RRSP contribution room. The issue is if you are no longer filing income tax returns in Canada, you won't be able to receive the tax deduction and resulting tax benefit from these contributions. However, the contributions would allow your pension account to grow as a tax sheltered savings tool for retirement.

When it comes time to retire from SPP the pension income is taxable and will be subject to non-resident withholding taxes. These differ depending on your country of residence. Either way, as a non-resident, you are still able to receive your SPP pension income.

Is my spouse able to make contributions on my behalf?

Spousal contributions are permitted. Contributions you make to a spouse or common-law partner's account reduce your RRSP deduction limit. The total amount you can deduct for a given tax year cannot be more than your RRSP deduction limit.

Contribution and PAC forms have a section to designate contributions for spousal deduction.

How do I contribute online from my bank account?

Contribute to SPP from your bank account by setting SPP up as a vendor with your online banking service. You will need to use your seven-digit SPP account number. You will be able to make one-time payments or set up a scheduled payment using this service.

Where do I find my RRSP deduction limit?

Your Notice of Assessment (NOA) from Canada Revenue Agency (CRA) tells you how much you can contribute to your RRSP each year. There are two important lines on the NOA:

  • A - indicates the amount CRA has calculated as your RRSP deduction limit for the current year.
  • B - shows the contributions already paid into an RRSP but not yet deducted.

If amount B is greater than amount A, you may have to pay a tax of 1% per month on your excess contributions.

For more information visit the CRA website.

Check out our quick video about Why your NOA is imporant.

General

What is SPP's dispute resolution process?

When members are unable to resolve issues with Plan administrators, they have the option to direct a letter of appeal to the Board of Trustees via the Plan's General Manger. The Board's ruling on these disputes is final.

What is Canadian Anti-Spam Legislation (CASL)?

Canadian Anti-Spam Legislation (CASL) affects electronic messages sent for a commercial purpose. The intent of the new law is to deter the most damaging and deceptive forms of spam from occurring in Canada.

Starting July 1, 2014 when the law takes effect, businesses must obtain your consent to send you an electronic message for the purpose of marketing a product or service to you.

SPP uses a permission-based email marketing system. We value the trust and privacy of each and every subscriber that joins our email list. When you give us your consent to send our eUpdates and newsletters to you, we will. Similarly, when you withdraw your consent by unsubscribing, we will remove you from the list promptly.

Pension Payments

How much will my pension be?

The amount of your monthly payment will depend on which annuity option you choose, your age at retirement, your account balance, and the interest and annuity rates in effect when you retire. SPP can provide a personal pension estimate for you if you call the toll-free line at 1-800-667-7153.

Can I transfer my money out?

Between the ages of 55 and 71, at retirement time, one of the options available is to transfer to either a Prescribed Registered Retirement Income Fund (PRRIF) or a Locked-in Retirement account (LIRA) with another financial institution.

Can I get my money out in a lump sum?

At retirement time, if you have a pension benefit of $23.04 or less per month, you may choose to take your money out in cash less a 10% withholding tax (sent to Canada Revenue Agency) or transfer your account into an RRSP.

Which annuity do people usually choose?

Each retirement option is different. Each member must choose the option best for them.

Will my monthly pension ever change?

No. Every month we set the interest and annuity rates according to current markets. The month you retire determines your monthly benefit for the rest of your life.

Will my SPP annuity income qualify for the pension income credit?

Yes, your SPP annuity payment qualifies for the pension income credit

Rate of Return

Are there any video about investing?

Yes, we have a whole series of videos related to the SPP and other pension topics. You can view all of them on our YouTube channel. Below are a few of our investment related topics.

Market Volatility

SPP's General Manager, Katherine Strutt, talk about how SPP approaches market turbulence and helps members understand investing for the long term.

Investing for the long term

Get the inside story about SPP's investment approach.

Why fees matter to your investments?

This short video, complete with an example, illustrates the impact fees have on the amount of money investors have for retirement.

Investment term: compound interest

The eighth wonder - compound interest! Explained in no nonsense language, we help you understand how this tool helps your SPP investment grow.

Who does our investing?

Kim Enge, SPP Board member, outlines how investing is done for SPP members, including the role of the Board and the fund managers.

What is the Plan's rate of return?

The Plan's average return to members since inception (1986 - 2016) is 8.05%. The five year average is 9.17% and the ten year average is 4.68%. The highest return in our history was 21.08% while the lowest was -16.23%. View return history.

Who will invest my money?

SPP has independent, professional money managers. The funds are invested in a diversified portfolio of high quality investments to ensure a competitive rate of return. Your investments are monitored regularly.

Leith Wheeler Investment Counsel Inc. and Greystone Managed Investments Inc. are the Plan investment managers.

Check out our quick video about Who does our investing?.

What is MER?

Management Expense Ratio (MER) is a measure of the cost of operating a fund as a percentage of average total assets. This is the cost charged to an account holder to manage and administer their investments.

SPP's MER is targeted to be 1% or less each year for the balanced fund. For a full list of SPP's MER history click here.

Check out our quick video about Why fees matter to your investments.

Are there Fund Facts available?

Yes, we have fund facts for Balanced fund and Short-term fund. You can also review information about our Pooled Funds. Fund Facts is an easy-to-read document designed to help you better understand the basic features of our funds and compare their differences.

Check out our quick video about SPP portfolio and Fund Fact .

Retirement

Do I have to wait until I'm 65 to retire?

No. You can retire from SPP anytime after reaching age 55. You must retire from SPP by age 71.

Do I have to retire at 65?

No. You can continue contributing to your account until you retire from SPP, which can be delayed until the end of the year in which your turn 71.

Tax Information

Who can use my SPP contribution for a tax deduction?

SPP contributions may be claimed by you or your spouse within CRA guidelines. The person using the contribution as a tax deduction must have available RRSP contribution room.

Check out our quick video about Why your NOA is imporant.

When will I get my tax receipt?

Receipts for contributions made between March 1 and December 31 are issued in early January. Receipts for contributions made in the first 60 days of the year are issued regularly throughout that period. Members using the pre-authorized contribution system receive one receipt for contributions made between March 2 and December 31 and another receipt for contributions made between January 1 and March 1.

Where should I claim my SPP contribution on my tax form?

SPP contributions should be reported on line 208 of your Canadian tax form. If you are carrying the contribution forward to deduct in future years you must show it on Schedule 7.

How do I allow my tax program to accept more than $2,500 in SPP contributions?

All tax receipts received for the remainder of 2016 and first 60 days of 2017 must be entered for the 2016 tax year. Some tax programs will not allow more than $2,500 of Saskatchewan Pension Plan (SPP) contributions to be claimed even though members are eligible to claim the full amount made. Therefore, it is important to always review your income tax return before filing, specifically line 208 of the T1 General, to ensure the full deduction expected is being made. If the full deduction required is not shown on line 208 you will need to make sure that you record your SPP contribution tax receipts the same way you would record a regular RRSP contribution tax receipt. In most programs this means you need designate your SPP contribution as an RRSP; in other words, do not indicate you have made an SPP contribution.

Remember, you must claim all SPP contributions made in the remainder of 2016 and first 60 days of 2017 as made on your 2016 income tax return. If you do not wish to deduct the full amount made, simply enter the amount you are claiming on line 13 of schedule 7 and the unused contributions to carry forward are calculated and can be seen on line 17 of schedule 7.

SPP contributions are eligible to be designated as a repayment towards Home Buyers Plan (HBP) or Lifelong Learning (LLP) plans.

What is the difference between SPP and an RRSP?

SPP follows the same income tax rules as an RRSP except that SPP is locked in. Under tax rules contributions to SPP can be used as repayments to the Home Buyers Plan (HBP) and the Lifelong Learning Plan (LLP). However withdrawals are not permitted for this purpose.

Withdrawals

Can I take my money out of SPP?

SPP is a locked-in pension plan which means your account must stay with the Plan until you are at least 55 years old. In the event of your death, the money in your account will be paid to your beneficiary.

Within six months of joining SPP, you can withdraw your contributions if you decide that you do not wish to participate in the Plan. After six months, the funds are locked in.

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