FAQ: Contributions

December 15, 2011

Saving money can be challenging.  It is not always easy to be disciplined enough to regularly put money aside for retirement. And even when you are committed to making regular contributions, there are times when life gets in the way and other expenses must take first priority.

That’s why we try to make contributing as easy as possible for SPP members. In the FAQs below we explain more about our flexible contribution options.

Q.1 How do I make my contribution?

A. Contributions can be made in a number of ways:

• Directly from your bank account on the 1st or 15th of the month by joining the pre-authorized contribution program.
• By mail or at your financial institution using a contribution form.
• Online or by telephone through your bank.
• Authorizing payments from your VISA or MasterCard on a pre-arranged schedule.
• Contributing online, by telephone or in person using VISA or MasterCard.

Q.2 Do I have to contribute the same amount each year?

A. 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 was changed to $2,500 effective December 7.

Q.3  Can I transfer money into SPP?

 A. SPP accepts transfers, up to $10,000 per calendar year from RRSPs, RRIFs and unlocked pension plans.

Q.4  Are my SPP contributions tax deductible?

A.   SPP contributions are subject to the same rules as RRSP contributions.    Your SPP contribution is tax deductible by you or your spouse, if he or she contributed for you. The person claiming the deduction must have unused contribution room for RRSP purposes.

Q.5 Can my creditors access my SPP contributions for outstanding debt?

A. Your money is protected from claim or seizure except in the event of an order under a marital division or an Enforcement of Maintenance Order.

Q.6 Can I take my contributions plus investment earnings out of SPP?

A. 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.