Defined Contribution Registered Pension Plan (DCRPP)

A DCRPP is flexible for you and for your employer.  It can lower your payroll taxes.  Your contributions to a DCRPP are not subject to Canada Pension Plan, Employment Insurance or any other applicable provincial payroll taxes.  A DCRPP may stimulate employee loyalty through incentives and restrictive access to contributions.  You may opt to have your employees’ plan become vested after as many as 24 months of consecutive plan membership, thereby helping you retain employees.
Foster Loyalty Though “Locked-In” Feature
With a DCRPP, required contributions from both the employer and employee are “locked-in” until retirement.  Because the funds are only available for their retirement, your employees may feel more of a long-term commitment to your business and their pension.
DCRPPs are more flexible than traditional Defined Benefit Plans.  Defined Benefit Plans require you to fund any shortcomings in the plan, but with Defined Contribution Plans, you are only responsible for making the defined contributions.
Since your payments to DCRPPs are fixed, your monthly expenses are easier to calculate.  You always know how much you will need to make your contributions.