Have you received a message about the Contributory Professional Retirement Savings Plan (CPRSP) recently?
Each year, eligible doctors in B.C. receive contributions to their retirement savings through this unique benefit, designed to provide a boost to their retirement plans.
Follow these three steps to find out whether you’re eligible to receive a CPRSP benefit and, if yes, how to ensure the benefit is paid to you. Your MD Advisor* can help you optimize your CPRSP benefit and plan for a comfortable retirement.
1. Confirm your eligibility
The CPRSP benefit is payable to physicians up to the age of 71 who have B.C. fee-for-service, or who are paid sessional or service contract income by one of the province’s six health authorities. (If you are 72, you can still receive the benefit if you have a spouse who is 71 or younger.)
The CPRSP has two components:
- The basic benefit matches eligible contributions you have made to your personal or spousal registered retirement savings plan (RRSP) or corporate individual pension plan (IPP). If you are in your first to fifth year of practice, you can receive the benefit without making a contribution.
- The length of service (LOS) benefit is based on how long you’ve practised medicine in B.C.
For 2019, the maximum basic benefit is $4,100 and the maximum LOS benefit is $3,480 for a combined maximum of $7,580. To get the maximum, you would need a net eligible income of at least $120,000 in the prior calendar year and 20 LOS years in B.C.
Each September, eligible physicians receive an email notification from Doctors of BC with details of their CPRSP benefit. The email will contain a link to your customized 2019 CPRSP letter/application form, outlining your benefit entitlement.
If you’re a member of Doctors of BC and haven’t yet received notification of an entitlement, you can log into the Doctors of BC website to see if you’re eligible for 2019.
If you’re not a member of Doctors of BC and are eligible, you can still claim a benefit, but an administration fee will be deducted prior to payment.
2. Gather the required documents
To receive the CPRSP, you need to complete the benefit application form. If you are required to match the basic benefit, you’ll also need to make the matching contribution and then provide proof that you’ve made it.
Acceptable matching contributions can include deposits to your personal RRSP or to a spousal RRSP to which you are the contributor, or contributions made by your medical practice corporation to your individual pension plan registered with the Canada Revenue Agency.
Doctors of BC has set the CPRSP application deadline of January 20, 2020, so be sure to make your matching RRSP or corporate IPP contribution by that date.
You’ll need to provide an acceptable proof of matching contribution to Doctors of BC with your CPRSP application. However, if your matching contribution is to an account with MD Financial Management, you can send your signed form to your MD Advisor, who will then provide proof to Doctors of BC for processing on your behalf.
3. Complete and submit your application
If you’ve confirmed your eligibility, gathered the necessary documentation, ensured you’ve made any required matching contribution and selected how to receive your benefit, you’re almost done.
The last step is to complete your application and send it to Doctors of BC for processing by the deadline of January 20, 2020. If you were born in 1948, your deadline is December 2, 2019 as Doctors of BC will need to ensure enough time to capture all RIF requirements prior to year-end. You can scan and email your application to email@example.com along with your proof of matching contribution, if you are not a client of MD Financial Management.
Alternatively, if you’re already a client of MD Financial Management, you can drop off your completed and signed application form to your local MD office, and MD will take care of the rest of the application process for you.
If you’re not a client, an MD Advisor can still help. Simply set up an appointment with your local MD office and bring your completed and signed application, together with your 2018 notice of assessment from the Canada Revenue Agency, to set up an MD Financial Management account and get assistance from your MD Advisor in processing your CPRSP benefit application.
If you have questions about any part of the eligibility or application process, contact Doctors of BC. An MD Advisor can also help you locate your CPRSP application form and ensure you reap the rewards of this valuable benefit program.
* MD Advisor refers to an MD Management Limited Financial Consultant or Investment Advisor (in Quebec), or an MD Private Investment Counsel Portfolio Manager.