You’ve heard of pension plans. You may even know a few people who have one. Probably, you already know that people with good pension plans retire better. A lot better. If you are a sole proprietor, a self-employed professional, or a business owner seeking a better financial future for yourself, a personal pension plan solution might be your best option.

Discover the power of a pension plan. You’ve seen others reap the rewards, and now it’s your turn. As a self-employed professional or business owner with a packed schedule, you need a straightforward plan that’s easy to understand and personalized for you. You need a plan that will stay with you for life – or let you leave easily if you need a change.

Get the inside scoop on the personal pension options available out there and see why Blue Pier’s™ “Personal” Pension Plan as a Service outshines RRSPs and the rest. It’s time to secure your future, effortlessly.

The Blue Pier™ Advantage – Choosing the Right Personal Pension Plan Provider for You in Canada

When choosing a personal pension plan provider, everyone should ask these questions:

In a pension plan who manages the money?

You know that a small change in your mortgage interest rate translates to a big difference in your monthly payment. It works the same way with pensions: money management is the most important thing to get right. Over a career, 1% difference in net investment returns translates to a 20% difference in your pension income.

Most people don’t like managing money. That’s why Blue Pier™ does it for you, under the supervision of our Board of Trustees and in collaboration with Canada’s largest, most successful asset manager.

What are the start-up and ongoing administration costs of an individual pension plan?

Costs matter. Some plans cost $2,000 – 3,000 per year for administration plus investment expenses, which may include trailer fees.

Blue Pier™ charges a modest startup fee in the first year (about $500) and a low annual fee on assets under management with no trailer fees. Get in touch with us for more information.

How long does it take to set up a personal pension plan?

The time required to establish a plan and start contributions depends a lot on the type of plan. If the plan must be registered individually with the CRA and a pension-standards regulator, it may be several months before a registration number is obtained.

With Blue Pier™ , you can have your personal pension plan up and running in 6 to 10 weeks!

How does the pension plan work?

Some plans are complex and have recurring compliance obligations.

Blue Pier™ is easy to understand and takes responsibility for pension compliance so you can focus on your practice. Call or email us to find out more.

Who’s responsible for pension plan administration? Will I have to become a trustee?

With some personal pension options, you will probably have to become a plan trustee. It will be your personal responsibility to ensure annual administration and compliance tasks get done, which include reporting to the CRA and the provincial pension regulator. If these tasks are not done correctly and on time, the plan’s registration and your retirement assets are at risk.

With Blue Pier™, you’re not a trustee and you’re not the plan administrator. The Blue Pier™ Board of Trustees is responsible for administration and regulatory compliance. All you have to do is make contributions and report them on your T4 slip. And we even help with that.

Are my contributions going to be used for someone else’s pension?

With DB pension plans that have more than a few members, pension liabilities and funding risks are pooled across a large group. This means some “cross-subsidization” among unrelated employers and members will inevitably occur. In other words, some of your contributions might end up paying for someone else’s pension.

With Blue Pier™ , this doesn’t happen. Your pension money is always yours.

Can I transfer my money out of my pension tax-free?

With some plans – i.e. DB Individual Pension Plans – there’s a limit on the amount of pension money you can transfer to your RRSP or RRIF. Anything over the CRA-prescribed transfer limit will be taxed immediately as income.

With Blue Pier™ , you don’t have to worry about this. Transfers from Blue Pier to other registered plans are tax-free. Always.

Are my retirement funds “locked-in”?

In most provinces, pension legislation requires that pension funds arising from employer contributions and matched member contributions must be used only to provide pension income. In other words, they cannot be withdrawn in cash or transferred to a regular RRSP. With a Defined-Benefit (DB) pension plan, you must receive benefits in the form of a lifetime pension income.

With Blue Pier™ , you decide whether your pension money is locked-in. You also have a lot more options to choose from when you are deciding how to use your pension savings, whether it’s locked in or not.

What if I change my mind? Is it easy to terminate the plan or withdraw?

With some personal plans like DB IPPs and multi-employer DB plans, it can be costly to change your mind. For example, if you terminate an IPP you’ll have to buy an annuity from an insurance company or transfer funds to an RRSP. If you terminate membership in a multi-employer DB plan, you will have to leave your money in the plan or transfer what you can to an RRSP. If you choose a transfer from any kind of DB plan, any amount that exceeds the CRA transfer limit will be immediately taxable.

Here at Blue Pier™ we want you to stay with us for life, but you don’t have to. We ask for 90 days advance notice to terminate participation. There’s no requirement to buy an annuity and you can always transfer your funds tax-free to another registered plan.

What are my income options when I retire?

It depends on the type of plan. With a DB plan, you will have to buy an annuity or take pension payments from the plan. Annuities are costly, and if you take payments from a personal DB plan like an IPP, you’ll have to pay the cost of keeping the plan going through retirement, make sure the regulatory compliance work gets done, and maintain your professional corporation.

With Blue Pier™ , you have more choices. You can receive retirement income directly from Blue Pier, transfer your pension money to a compliant RRSP or RRIF, buy an annuity from an insurance company, or do any combination of these. If you stay with Blue Pier through retirement, we can show you how to achieve an enhanced retirement income. You can even wind up your professional corporation if desired.

Do I need a professional corporation?

Self-employed professionals will usually have to incorporate if they want a pension plan. All bona fide pension plans must provide pensions in respect of employment service, which means you need to have employment income reportable to the Canada Revenue Agency on a T4 slip. For most professionals, this is done by creating a professional corporation to receive revenues from professional services and pay T4 income to its shareholder(s) and other employees as desired.

How Blue Pier™ Compares

 Blue PierᵀᴹRRSPDefined Benefit
IPP		Defined Benefit
MEPP
Flexible retirement-income
options		✓✗✗✗
Tax-free portability✓✓✗✗
Low fees✓Depends✗Depends
Low Workload/Risk✓✗✗✓
Retirement income without
a professional corp
Available across
Canada
Unlimited contribution
flexibility
Institutional asset
management
Low CRA
compliance risk

The Blue Pier™ Advantage – Simply, Better Performance

As a dedicated self-employed professional or business owner, we understand that your time is precious. You deserve a pension plan that effortlessly supports your financial future while you focus on the needs of your patients, clients, or other stakeholders. You probably don’t want complicated schemes and sleepless nights worrying whether you overplayed the rules or locked yourself into the wrong long-term commitment. With Blue Pier™ you can trust in a low-maintenance, gimmick-free plan that simply gets the job done right.

How much better can you retire? Look at the numbers and discover why Blue Pier™ may be a good fit for you. Rest easy, knowing you’ve played by the rules and secured your financial future.

*Assumptions provided on request. The projections shown above are intended to be used solely for illustrative and informational purposes. They are not a guarantee or a promise of performance.

The Blue Pier™ Advantage – Fast Sign Up

In 10 weeks or less, you can have your own personal pension plan. Here’s how it works:

  • Week 0 – 1: Virtual meeting with Blue Pier™ staff to capture your desired plan features.
  • Week 1 – 3: Review sign-up information and documents. Discuss and address any questions or concerns.
  • Week 3 – 7: You (and your employees if desired) enroll, and online accounts are established for seamless access.
  • Week 8 – 10: Contributions and pension accrual begin.

It’s that easy!

Secure Your Future with Blue Pier™

Don’t leave your retirement to chance. Book a free consultation or get in touch with Blue Pier™ today to start planning your personalized pension solution. Experience the peace of mind that comes with a pension plan designed exclusively for professionals like you. Trust in Blue Pier™ to guide you towards a worry-free and financially rewarding retirement.

Disclaimer: The information provided here is for informational purposes only and should not be considered as personalized financial advice. When evaluating your options for pensions, Blue Pier™ recommends consulting with a licensed, fee-only financial planner so you get independent, unbiased advice.