Frequently Asked Questions
Can I take my money out of SPP?
SPP is a locked-in pension plan which means your contributions 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.
Members may receive a refund of their account if they change their mind within 60 days of their date of application or their first contribution, whichever is later.
What is the difference between SPP and an RRSP?
SPP follows the same income tax deferral rules as an RRSP, but SPP is locked-in until age 55. Once you start collecting SPP annuities they are eligible for the Pension Income Tax Credit (you may be able to claim up to $2,000).
You record your SPP contribution tax receipts the same way you would record a regular RRSP contribution tax receipt. 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.
How much can I contribute to SPP?
SPP regulations have been amended to remove the limits. Members can now contribute within their RRSP contribution room. There are no yearly minimums, and no obligation to contribute on a set schedule. In addition, you can Transfer-In from existing unlocked RRSPs, RRIFs, RPPs, and DPSPs.
Do I have to contribute the same amount each year?
There is no minimum contribution. SPP is designed to be very flexible and to accommodate your individual financial circumstances. How often you contribute is entirely up to you.
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