Westcoast Watch!

Edition WW-P3

 

March 7, 2003

 

 

Westcoast Actuaries Inc. is pleased to announce the release of its no-fee Individual Pension Plan (IPP) On-Line Quoting System, version 2003.2.

 

The IPP On-Line Quoting System is specifically designed for shareholders of corporations with post-1990 past service.

 

The IPP On-Line Quoting System provides clients and their financial advisors with an immediate quotation showing:

 

¨      a summary indicating maximum deductible contributions for 2003, 2004 and 2005; and

 

¨      a year-by-year comparison of contributions and accumulations for an IPP / RRSP combination versus an RRSP.

 

The IPP On-Line Quoting System takes into account the changes proposed in the February 2003 Federal Budget.  The following 4 tables show that post-budget IPPs are even more advantageous than pre-budget IPPs when compared to RRSPs.

 

 

Table 1 – 2003 Current Service Contributions - Samples

 

Age

45

50

55

60

65

 

 

 

 

 

 

Post-Budget

$18,597

20,428

22,439

24,648

25,959

 

 

 

 

 

 

Pre-Budget

$16,895

18,558

20,385

22,392

25,959

 

 

 

 

 

 

Increase

$1,702

1,870

2,054

2,256

0

 

 

Table 2 – 2003 Current Service Contributions - Samples

 

Age

45

50

55

60

65

 

 

 

 

 

 

Post-Budget IPP

$18,597

20,428

22,439

24,648

25,949

 

 

 

 

 

 

Post-Budget RRSP

$14,500

14,500

14,500

14,500

14,500

 

 

 

 

 

 

Differences

 

 

 

 

 

   Post-Budget

$4,097

5,928

7,939

10,148

11,449

   Pre-Budget

$3,395

5,058

6,885

8,892

12,449

 

 

Table 3 – New 2003 IPP Member Joining At Age 60

 

Year

2003

2004

2005

2006

2007

2008

Age

60

61

62

63

64

65

 

 

 

 

 

 

 

IPP

$24,648

26,497

28,484

30,620

32,917

35,385

 

 

 

 

 

 

 

RRSP

$14,500

15,500

16,500

18,000

18,990

20,030

 

 

 

 

 

 

 

Differences

 

 

 

 

 

 

   Post-Budget

$10,148

10,997

11,984

12,620

13,927

15,355

   Pre-Budget

$8,892

9,571

10,376

11,467

12,653

13,945

 

 

Table 4 – 2003 IPP Member Joining At Age 60 - Maximum Contributions

 

 

Post-Budget

Pre-Budget

 

 

 

Past Service Liability

$285,264

259,164

Less Qualifying Transfer From RRSP

($167,400)

(167,400)

 

 

 

Net Past Service Contributions

$117,864

91,764

Add Current Service Contributions

$24,648

22,392

 

 

 

Maximum Total Contributions

$142,512

114,156

 

 

Our website provides a considerable amount of IPP information.  A good starting point is our IPP FAQ (Frequently Asked Questions) which you can review by clicking here..

 

 

This WESTCOAST WATCH! publication is for information purposes only.  Every effort has been made to ensure the accuracy of the information provided herein.  However, no person or firm involved in the preparation or distribution of this bulletin accepts any liability for its contents or use.