CPRSP

The Contributory Professional Retirement Savings Plan (CPRSP) provides funds to physicians for their retirement.  CPRSP has two components:

  • Basic benefit 

  • Length of Service (LOS) benefit 

The maximum CPRSP benefit available for 2021 is $9,000 (Basic $5,000 and LOS of $4,000).

Each fall Doctors of BC calculates and makes available a CPRSP benefit for physicians to claim via the Doctors of BC website.

Highlights For 2021 CPRSP

  1. RRSP and TFSA claims only:  You are no longer required to attach a deposit confirmation with your online claim; however you may be selected to provide proof of contribution at a later date.

    This applies to your unclaimed 2019 and 2020 CPRSP benefits as well. 

    IMPORTANT:  Please ensure you retain your RRSP/TFSA deposit confirmations for a two year period in case you are selected to provide proof of contribution.  Failure to provide appropriate documentation will affect your future CPRSP Benefit. 

    Your RRSP and/or TFSA contributions can be reimbursed with current and previous years’ benefits but not future year’s benefits.  The CPRSP is to encourage you to save annually and regularly towards your retirement. 

    For example, you have: 
    2019 CPRSP Basic benefit of $4,000 + LOS benefit of $3,000 = Total $7,000
    2020 CPRSP Basic benefit of $5,000 + LOS benefit of $4,000 = Total $9,000
    2021 CPRSP Basic benefit of $5,000 + LOS benefit of $4,000 = Total $9,000
                      Total available to claim from all three entitlement years = $25,000

    Your last contribution to your RRSP was on December 15, 2019 for $20,000.  You do not contribute to a TFSA.  This contribution can only be reimbursed with your 2019 CPRSP benefit amount.  On February 2022, you want to claim Total available of $25,000.  Prior to claiming total available of $25,000, you need to deposit a minimum of $18,000 (2020 CPRSP $9,000 + 2021 CPRSP $9,000) to your RRSP and/or TFSA.  Your 2019 RRSP receipt of $20,000 can be reimbursed with the 2019 CPRSP only.  Your 2022 RRSP receipt of $18,000 can be reimbursed with the 2020 and 2021 CPRSP.  Ensure you retain your RRSP deposit confirmation for a two year period in case you are selected to provide proof of contribution at a future date. 
     

  2. Corporate Pension Plan (IPP) claims:  Corporation’s pension plan deposit confirmations will still be required with the online claim. 

    If you have closed your IPP or have recently set one up, please reach out to a Benefits Administrator via prior to submitting your online claim.

 

Who is eligible for CPRSP

To be eligible for CPRSP, you must have been paid on a fee-for-service basis by MSP or through a sessional and/or non-salaried service contract by the Health Authorities in the prior calendar year.

  • If you are over age 71 (Canada Revenue Agency’s age limit), you may still claim the CPRSP benefit, up to your RRSP deduction limit, if you:
    • Have a spousal (where you are the registered contributor) RRSP and your spouse is 71 years old or younger.
    • Have a personal Tax Free Savings Account.
Eligible retirement savings vehicles

The CPRSP benefit can be reimbursed to you for contributions you make to:

  • your personal or spousal RRSP account where you are the registered contributor
  • your personal Tax Free Savings Account, or
  • your corporation for your corporation’s contributions to an IPP (Individual Pension Plan). 
How CPRSP is calculated

Basic benefit

  • The Basic benefit is based on your previous calendar year’s eligible income and the practice type assigned to you by MSP, which will determine your net income.
  • Net income of $110,000 = maximum Basic benefit = $5,000 in 2021
  • You need to deposit this amount into your RRSP and/or TFSA or corporate IPP prior to claiming a reimbursement from the CPRSP. 

LOS benefit

  • The Length of Service (LOS) benefit is based on your previous calendar year’s eligible income and the number of years you have practiced in BC.  You must have worked at least 9 months of a year in BC for that year to qualify for the benefit.
  • The maximum benefit of $4,000 in 2021 will be paid if you:
    • Have practiced in BC for 20 LOS years or more, and meet the minimum income threshold.
    • Have deposited this amount into your RRSP and/or TFSA or corporate IPP prior to claiming a reimbursement from the CPRSP.
  • The LOS is allocated as follows:
Years of practice in BC (at least 9 months of a year in BC = 1 LOS year) Percentage of maximum LOS 
1 - 4 years 20%
5 - 9 years 40%
10 - 14 years 60%
15 - 19 years 80%
20 years or more 100%

 

Annual gross eligible income Percentage of LOS payable
< $5,000 0%
$ 5,001 – $ 15,000 20%
$15,001 - $30,000 40%
$30,001 - $45,000 60%
$45,001 - $55,000 80%
> $55,000  100%
Forfeiture and application deadlines

The CPRSP is calculated around the fall of each year.  Once available, you have two and a half years to claim before it expires and forfeits.

For example, if your 2019 CPRSP Basic and LOS benefits are not claimed by March 31, 2022, it will be forfeited and returned to the fund for redistribution.

On-line claims will be processed and reimbursed within three weeks.

Forms and more information

Email:

How non-members are paid

If you are not a member in the year the entitlement is allotted, an administration fee of the lesser of 50% of your Basic benefit or the balance remaining of your equivalent Doctors of BC membership dues, plus GST, will be deducted prior to payment, for each benefit year being claimed.  

An administration fee receipt will be issued to you in February of the following year.

Include the CPRSP benefit on your income tax

A T4A will be issued for the CPRSP benefit.  You must include this amount in your personal income.  Your financial institution will also issue an income tax receipt for your deposits made in the remainder of the year and/or first 60 days of the following year as an offset for income tax purposes.

A T4A is not issued when the CPRSP benefit is paid to your corporate bank account for Corporate IPP only.  

For tax-related questions we recommend that you seek advice from your accountant or financial planner. 

For more information

For CPRSP inquiries, please contact Doctors of BC Benefits Department.

E-mail

Telephone 604 638 2926
Toll Free 1 800 665 2262 ext 2926