DEFINITION of 'Registered Pension Plan - RPP'

A form of a trust that provides pension benefits for an employee of a company upon retirement. RPPs are registered with the Canada Revenue Agency. The employee and employer, or just the employer make contributions to this retirement plan until the employee leaves the company or retires.

BREAKING DOWN 'Registered Pension Plan - RPP'

Contributions to an RPP are tax deductible for both the employee and the employer. Contributions to the plan and gains on underlying assets are tax deferred, so the funds are taxed when they are withdrawn from the plan.

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RELATED FAQS
  1. Are contributions to Registered Pension Plans (RPPs) tax deductible?

    Contributing to a Registered Retirement Plan offers eligible employees a way to make tax-deductible contributions to a retirement ... Read Answer >>
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    Learn the key differences between RRSPs and RPPs. Review the basics of Registered Retirement Savings Plans and Registered ... Read Answer >>
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    Understand the different types of qualified retirement plans and what they mean in terms of employee and employer contribution ... Read Answer >>
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