Defined Contribution Registered Pension Plan (DCRPP)

A Defined Contribution Registered Plan (DCRPP) is another option to consider. Gaining popularity over Defined Benefit Plans, the DCRPP is more flexible for you, the employer.

Lower Your Payroll Taxes

Your contributions to a DCRPP are not subject to Canada Pension Plan, Employment Insurance or any other applicable provincial payroll taxes. A DCRPP may stimulate employee loyalty through incentives and restrictive access to contributions.

Retain Employees Through Vesting

You may opt to have your employees’ plan become vested after as many as 24 months of consecutive plan membership.

Foster Loyalty Through “Locked-In” Feature

With a DCRPP, required contributions from both the employer and employee are ‘locked-in’ until retirement. Because the funds are only available for their retirement, your employees may feel more of a long-term commitment to your business and their pension.


DCRPPs are more flexible than traditional Defined Benefit Plans. Defined Benefit Plans require you to fund any shortcomings in the plan, but with Defined Contribution Plans, you are only responsible for making the defined contribution.


Because your payments to DCRPPs are fixed, your monthly expenses are easier to calculate. You always know how much you will need to make your contributions.