Explaining the PPP® on The Just Word Podcast

Fact Sheet - Buying Past Service

One of the advantages of setting up a new pension plan is that it allows a plan member, with the consent of the employer, to create a pension entitlement for prior years. Such a member might have missed out on years of contributions when the plan was not yet established and can now purchase past service under the newly set up pension plan. These extra contributions are added to the plan and are tax deductible to the corporation.