The Birth of the CanadianFamily
Pension Plan

In 2014, Canadian tax laws levelled the playing field for small business owners, increasing the tax on non-eligible dividends to make the tax bite between salary and dividends equivalent.

Pension benefits finallyAvailable to more Canadians

The Family Pension Plan (FPP) was designed and introduced to the Canadian market about four years ago for self-employed professionals that did not have access to the many benefits offered by pension plans. To qualify for the Family Pension Plan (FPP), business owners and incorporated professionals must be between 18 and 71 years old and receiving a T4 income.

The Family Pension Plan (FPP) allows its members to put the largest amount of money permitted by the Income Tax Act in a tax-deferred vehicle to save for their retirement. For a full list of the benefits allowed within the Family Pension Plan, please contact us.

Designed to deliverSuperior Tax Advantages

As a combination registered pension plan under section 147.1 of the Income Tax Act (Canada), the Family Pension Plan (FPP) provides greater flexibility through its uniquely integrated structure.


Defined Benefit Component

  • Current Service & Past Service (Including Qualifying Transfer)
  • Locked-in

 Defined Contribution Component

  • 1% of T4 Income
  • Locked-in

Additional Voluntary Contributions

  • Not Locked-in
  • Allows transfers in of additional RRSP assets in order to tax deduct Investment Management Fees
  • 0% to 17% voluntary employee contributions

Exceeding RRSPContribution Limits

Under Canadian tax law, contribution limits to all pension plans, including the Family Pension Plan, are more generous than the RRSP limits. This is just one of the many significant pension benefits that are now available to Canadian professionals in the Family Pension Plan.