A reward for bottom-line success

A Deferred Profit Sharing Plan (DPSP) is an excellent way to motivate and engage your workforce, and reward their contribution to your company’s bottom line. This employer-sponsored plan allows for profit sharing through a registered savings plan, and provides an excellent complement to a group RRSP. A Link DPSP provides cost savings as employer contributions do not attract payroll tax, and flexibility as employer contributions are locked in until fully vested or the employee retires.

Features and Benefits of a Link DPSP

  • Only a plan sponsor contributes to a DPSP
  • Contributions do not attract payroll taxes
  • Contribution amounts are tax deductible
  • No requirement for plan sponsors to contribute in years where no profits are accrued
  • Tax-deferred for members
  • Vesting rules are permitted
  • Employees only have access to contributions upon leaving employment (and meeting vesting requirements)
  • Employee contributions are held separately in a group RRSP (no vesting)
Financial Wellness Benefit Plans

Create a culture of caring