Individual Pension Plans

Financial security in retirement is a particularly significant issue for owners of small-to-medium sized enterprises (SMEs). Surveys of business owners indicate that the majority have failed to adequately plan for succession or retirement, but are nevertheless relying on the sale of their business plus any RRSP savings to fund their retirement years. The transition or sale of a business to the next generation or a new owner can be a significant challenge, both emotionally and financially.

Through an Individual Pension Plan, retirement planning can be implemented in advance, ensuring a guaranteed retirement income for life, independent from the sale of the business.

↓ What is an Individual Pension Plan and why consider it?
↓ The Toron Future Focus Program
↓ Who qualifies for an IPP?
↓ Who are the partners in the Toron Future Focus Program?

What is an Individual Pension Plan and why consider it?

An Individual Pension Plan (IPP) is a defined benefit pension plan for one or more people (the business owner and spouse, if applicable) sponsored and funded by the employer (the business owner's corporation). Through an IPP, an incorporated business owner can use tax-deductible corporate contributions to fund a personal pension plan, thereby providing a source of guaranteed income for retirement. Depending on age, maximum IPP contributions are well in excess of those allowed under RRSPs, resulting in far greater retirement income.

In addition, the business owner's corporation can also purchase "Past Service" for eligible employees. Past service is defined as the ability to assume that the Individual Pension Plan was in effect from the date of incorporation (latest 1991) and to make catch up contributions which are deductible to the corporation.

For a more detailed introduction to IPPs, please click here to view a short presentation. ↑ top

The Toron Future Focus Program

Toron is the primary investment manager in a unique and significant IPP program. The Toron Future Focus Program has been designed to create a lifetime of income on a tax-preferred basis. It is available to SME business owners, qualifying Association members and Franchise owners who wish to plan for a better and more secure retirement for themselves and their family.

The Toron Future Focus Program provides for the creation, implementation and ongoing administration of:

  • an Individual Pension Plan, providing significantly greater tax benefits and retirement income than RRSPs.
  • an Additional Voluntary Account that facilitates RRSP transfers into the IPP. This account is not locked-in, so funds can be paid out under an RRIF.
  • a Health Spending Account through which medical expenses can be paid on a pre-tax basis. For more details, please click here to view a short presentation on the Health Spending Account.
  • an Investment Portfolio that has been specifically designed to meet the IPP investment mandate. Assets will be managed through one of three investment options with an asset mix corresponding to your risk tolerance: Global Fixed Income, Global Balanced, or Global Equity Investments.

As investment managers, we are value driven in our investment approach. We employ our own proprietary investment research and analysis, and believe strongly that by focusing on risk management and proper asset allocation, our clients are shielded from the vagaries of volatile markets over the long term. We search the global markets for outstanding companies that are leaders in their field and will deliver superior returns over time. Our disciplined investment style is perfectly suited to the long term planning goals inherent in an IPP.

For more details on the Investment Portfolio, please click here to view a short presentation.
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Who qualifies for an IPP?

To qualify for an IPP, a candidate must:

  • have a bone fide employer-employee relationship (the candidate must receive T4 income from the employer sponsoring the plan)
  • have combined spousal earnings of at least $90,000 per year
  • be an owner/manager of at least 40 years of age
  • already be able to maximize RRSP contributions

Note: The firm must be incorporated.↑ top

Who are the partners in the Toron Future Focus Program?

Toron, in conjunction with W.C. Kennedy & Associates and Wellknit Services, is the provider of the Toron Future Focus Program.

W.C. Kennedy & Associates Inc. is a well-established actuarial consulting firm with offices in Mississauga, Ontario. The firm is dedicated to providing its valued clients with first-class actuarial services at competitive rates. For more information, visit www.executiveretirementplan.ca

Wellknit Services sells and administers employer sponsored group benefit programs that focus on employee health and productivity. Balancing the needs of the employer and the individual, their services generate value by providing protection, choice, accountability and rewards. For more information, visit www.wellknit.ca ↑ top