Individual Pension Plan (IPP) Service Package

(Actuarial and Administration Services)

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IPP Service Package & Fees

Westcoast Actuaries Inc. offers an attractive and convenient “IPP Service Package” which is a flat annual fee arrangement for all actuarial and administration services necessary to implement and to maintain an IPP on an on-going basis. The key features of our IPP Service Package are:

• The client pays only the annual fee each year while the IPP is in place.
• The first year fee is payable upon the submission of the request for implementation of the IPP.
• Annual fees for subsequent years are payable February 1st.
• There is NO separate fee for implementation.
• There is NO separate fee for the triennial actuarial valuation.

Our Annual Fee Service Package for IPPs is unique because we only charge an annual fee for a standard set of actuarial and administration services the clients need for implementation, annual administration and the triennial actuarial valuation. Clients are not required to pay a significant amount of fee for implementation or for the triennial valuation every three years which is typical of all other actuarial consulting firms. Our IPP Service Package offers superior value and delivers quality professional services at reasonable costs to our client. Clients who take advantage of our IPP Service Package will be assured of transparency and complete cost certainty; they know exactly what the IPP long-term average annual cost is with respect to the actuarial and administration services required.

Please refer to details in the following sections:

• Amount of Annual Fees
• Payment of Annual Fees
• Services Covered by IPP Annual Fees
• Late Submission of Time-Sensitive Implementation to Westcoast Actuaries Inc.

Amount of Annual Fees

The annual fees under the Westcoast Actuaries Inc. "IPP Service Package" based on the applicable jurisdiction are as follows:

		IPP Funding Arrangement
Provinces or Territories		Pension Trust with 3 Individual Trustees	Pension Trust with a Corporate Trustee Or Group Pension Contract with an Insurance Company
British Columbia (BC)		$865	$692
Alberta (AB) connected person		$865	$692
Alberta (AB) non-connected person		$1105	$884
Saskatchewan (SK)		$1105	$884
Manitoba (MB)		$865	$692
Ontario (ON)		$1765	$1412
Prince Edward Island (PE)		$865	$692
Quebec (QC) connected person		$865	$692
Quebec (QC) non-connected person		$2500	$2000
New Brunswick (NB)		$2500	$2000
Newfoundland & Labrador (NL)		$2500	$2000
Northwest Territories* (NT)		$2500	$2000
Nova Scotia (NS)		$2500	$2000
Nunavut* (NU)		$2500	$2000
Yukon Territory* (YT)		$2500	$2000
Federal		$2500	$2000

• air, water, or railway transport

• inter-provincial trucking

• radio, television & telegraph

• atomic energy

• flour, feed or seed mills

• chartered banks

• employment in the Northwest Territories, the Yukon Territory, or Nunavut.

If it is not "Included Employment" under the Federal jurisdiction, the province of employment determines the applicable jurisdiction.

Note:

1. The applicable IPP Service Package annual fee in the table above is only for an IPP that satisfies all of the following conditions:
   a) It is for only 1 employee;
   b) It is either for an employee who is a connected person (10% or more shareholder or related person) or for a non-connected employee who is highly compensated (2009 remuneration of over $115,750);
   c) If the employee is a connected person, only post-1990 past service is recognized, or if the employee is not a connected person, only post-1989 past service is recognized; and
   d) The employee is/was not a member of any other pension plan.

Services for an IPP that does not satisfy all of the above conditions will be handled on a fee-for-service basis. Please contact Westcoast Actuaries Inc. at (604) 730-1898 or at info@WAInc.ca for an estimated fee quote. Effective January 1, 2009, Westcoast Actuaries Inc. no longer offers IPP Service Package to IPPs that cover both spouses.

2. Non-standard IPPs are subject to surcharges.

3. Applicable federal / provincial filing fees are extra.

4. Services not listed under Services Covered by Annual Fees will be billed on a fee-for-service basis as incurred.

5. Our fees are subject to change on January 1st each year.

6. All fees are quoted before GST.

Payment of Annual Fees

The fee for the first year is payable immediately upon the submission of data from plan implementation

Invoices for subsequent years become payable each February 1st.

Non-payment of our annual fees will result in late or non-filing of required CRA forms. This may result in having significant penalties levied by CRA/Provincial Regulators and payable by the IPP plan sponsor.

Services Covered by IPP Annual Fees

The services covered by the Westcoast Actuaries Inc. “IPP Service Package” for Actuarial & Administration Services for IPPs are as follows:


Plan Implementation

Ø       Preparation of the following documents:

o        Board resolution to adopt pension plan.

o       Canada Revenue Agency (“CRA”) Application To Register A Pension Plan form (T510 Form).

o        Provincial Application For Registration Form and other documents required by the federal / provincial pension regulator, as applicable.

o        Pension plan document and, if required, trust agreement.

o      Initial actuarial valuation report and request for tax-deductibility of pension plan contributions.

Ø   Submission of application for registration and correspondence with the CRA and provincial pension regulator as applicable to secure plan registration.

Ø      Preparation and filing of FSCO Investment Information Summary and Form 7 Summary of Contributions Form (Form 7) as applicable.

Triennial (Every Three Years) Valuation

Ø     Preparation of the triennial actuarial valuation report on a going-concern basis using the "Maximum Funding Valuation" actuarial assumptions and basis prescribed in Income Tax Regulation for Designated Plans and on a solvency basis if required by the applicable pension legislation.

Ø    Filing of the triennial actuarial valuation report with CRA to request for tax-deductibility of pension plan contributions.

Ø    Filing of the triennial actuarial valuation report and if applicable, the prescribed actuarial cost certificate or Actuarial Information Summary Form, with the provincial pension regulator.

Late Submission of Time-Sensitive Implementation Request to Westcoast Actuaries Inc.

Westcoast Actuaries Inc. requires at least 5 business days notice in order to implement an IPP prior to a certain deadline (e.g. the end of the fiscal year).  We will not be able to implement an IPP for a client with less than 5 business days notice.  For an IPP implementation that is time-sensitive, we have the following one-time implementation surcharges:

Choose a month to view the 2009 surcharge timetable.

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