The Structured RRSP (STRP) provides a systematic method of allocating Plan Sponsor and member contributions in separate accounts under the umbrella of a single registered retirement savings plan.

For tax purposes, the Plan Sponsor's contributions are treated as though they were member contributions added to members' earnings and earmarked as additional member contributions. (Note, this may increase C/QPP, EI and WC contributions and benefits.)

Sponsor advantages

• plan design flexibility
• hassle-free administration
• reduced government reporting
• tax deductions - indirect Sponsor contributions or any administration expenses paid by the Sponsor are tax deductible

Member advantages

• a convenient, disciplined savings program
• Sponsor contributions
• immediate tax reductions
• early investment yields more income
• dollar cost averaging reduces investment risk
• income-splitting possibilities
• group buying power - higher interest rates and favourable investment management fees
• flexibility at termination and retirement - immediate vesting with no locking-in rules