Posted under: News, Business Owners, IPP
First and foremost, we hope that everyone is staying safe while we deal with the outbreak and spread of COVID-19. We at GBL are doing everything we can to keep our employees and clients safe, while still being available to service your pension needs and provide the customer support you are accustomed to.
We wanted to take a moment to provide answers to some frequently asked questions (FAQ) about Individual Pension Plans (IPPs) during this time:
Will this impact my 2020 pension filings prepared by GBL?
No. GBL is still operating and we can assure you we are working hard to prepare all of the IPP filings for the year and we are ensuring that everything is filed on time.
Can I stop contributing to my IPP?
For connected individuals in most provinces, IPP funding is flexible. Should you wish to postpone pension contributions at this time you can likely do so. If you choose, funding can be made up later this year, or in future years. There is no application or notification to suspend contributions. Simply speak with your financial advisor to coordinate. GBL will continue to track any accrued liabilities in the event that you choose to top up in the future.
How does the market downturn impact your IPP funding?
As GBL completes reporting at the calendar year end, any 2020 valuation reports prepared will be based off December 31, 2019 market values and will not take into account the current market downturn.
If you wish to capitalize on funding based on the current market value of your IPP assets, we can prepare a funding report at any date and once the report is complete, the company can fund any deficiency.
Does this impact my pension in pay or can I reduce my 2020 pension?
No. The IPP is still required to make the annual pension payment and unlike RRIFs there is no adjustment for 2020 . However, clients can elect to take an annual pension payment and defer payments until the market improves later in the year.
We are here to help with any questions you may have. Feel free to reach out to your GBL consultant, or [email protected] should you have any questions regarding the impacts on your pension plan.
Note: the above information is accurate as of March 25, 2020, while we don’t anticipate any changes to the above, we will update as new information becomes available.
Founded in 1995, GBL is a leading provider of retirement, health, and cross-border solutions for business owners across Canada. With offices in Calgary and Toronto, we have served 6,000+ clients, have 3,000+ Financial/Investment Advisors in our network, actively manage 2,000+ IPPs and RCAs, and have created 1,000+ HBPs and 3,000+ FMVs. We’re known for our industry leading client service and administration, as well as our top-notch actuarial group. Contact us today at [email protected] or 403.249.1820 and follow us to learn how we can help Build Your Future. www.gblinc.ca
