. Get exclusive investment industry news and insights, the week’s top headlines, and what you and your clients need to know.
Mr. Laporte says his critics are being misleading when they claim the PPP is “a marketing trick ... just an IPP with higher fees.” “We actually offer a hybrid individual pension plan here, which is the exact same as the personal pension plan,” says Navaz Cassam, president and chief actuary of GBL in Calgary, “but nobody takes it [as] it really doesn’t make sense for [clients] to pay more for something they’re not going to utilize.”
Switching between the features allows PPP clients to make up to $103,000 in additional contributions over and above what would be possible with an IPP, Mr. Laporte adds. “That’s what happens in a classic IPP,” Mr. Laporte says, “but with us, you’d still get a contribution holiday [for the DB account, then] we can flip into the money purchase side of the plan, so we don’t have to worry.”
While the CRA made no specific reference to PPPs, Mr. Cheng says when the CRA came out with that announcement, people within the pension industry and IPP market were saying that “[Mr. Laporte] and Integris are in trouble.”