Everything You Need to Know About CPRSP and How to Apply
The Contributory Professional Retirement Savings Plan (CPRSP) is a unique benefit program administered by Doctors of BC that is available to eligible practising physicians in British Columbia.1 This program helps fund retirement for physicians by providing additional contributions to their personal or spousal registered retirement savings plan (RRSP) or to the medical corporation’s individual pension plan (IPP).
- If you are an eligible physician, you will be notified of your CPRSP entitlement by Doctors of BC in November.
- The application deadline for 71-year-old physicians is December 1, 2015. For all other physicians, the deadline is January 18, 2016.
- The deadline for 2015 RRSP contributions is February 29, 2016.
Types of Contribution Benefits
The CPRSP program has two components: the basic benefit and the length of service (LOS) benefit.
This is a matched benefit—meaning your RRSP, spousal RRSP or IPP contributions are matched up to your full entitlement amount by CPRSP. This benefit is only paid if you have made a contribution to your retirement savings account. Note that the key determining factors of your annual benefit entitlement are your eligible income earned in the previous calendar year; and your practice type. Your annual basic benefit entitlement expires if you do not claim it. For example, the 2015 CPRSP basic benefit expires on March 31, 2018.
This benefit is not a matched benefit—rather, the amount is based on your eligible income earned in the previous calendar year; and on your length of service as a physician in B.C. A physician must work in B.C. for at least nine months in a year to receive the LOS benefit. While this benefit is not a matched benefit, it is only payable if you have made a contribution to your retirement savings account and claimed your full basic benefit entitlement; it is not payable on its own. Once your full basic benefit entitlement has been claimed, the LOS benefit is included on the same payment. The LOS benefit expires with the unclaimed basic benefit entitlement from the same year.
CPRSP Application Checklist
As a member of the Canadian Medical Association (CMA) and Doctors of BC, you have access to an MD Advisor, who will take care of the CPRSP application process for you. Your MD Advisor will ensure that you receive what you’re entitled to—saving you time and making the process hassle-free.
Please see the CPRSP application checklist below—and make sure you get your RRSP contribution in before the deadline.
- Log in to the Doctors of BC website.
- Go to your account and select “View all documents” to view your 2015 CPRSP entitlement package.
- Print your personalized CPRSP application (which specifies your entitlement) and cover letter.
- If you already have an MD RRSP account, fax or drop off your signed application forms at your local MD office. Your MD Advisor will take care of the rest.
- If you don’t already have an MD RRSP, switching is easy. Just book an appointment with an MD Advisor, complete the CPRSP application form, and they will take care of the rest.
- Bring your 2014 notice of assessment from Canada Revenue Agency and your completed CPRSP application to your appointment. The notice of assessment will help to ensure that you don’t over-contribute and exceed your RRSP deduction limit.