The Contributory Professional Retirement Savings Plan (CPRSP) provides funds to physicians for their retirement. CPRSP has two components:
Length of Service (LOS) benefit
The maximum CPRSP benefit available for 2020 is $9,000 (Basic $5,000 and LOS of $4,000).
Each fall Doctors of BC calculates and make available a CPRSP benefit for physicians to claim via the Doctors of BC website.
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.
The CPRSP benefit can be reimbursed to you for contributions you make to:
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 $120,000 = maximum Basic benefit = $5,000 in 2020
You need to deposit this amount into your RRSP and/or TFSA or corporate IPP prior to claiming a reimbursement from the CPRSP.
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 $4,000 in 2020 will be paid if you:
Have practiced in BC for 20 LOS years or more, and meet the minimum income threshold.
Have deposited this amount into your RRSP and/or TFSA or corporate IPP prior to claiming a reimbursement from the CPRSP.
The LOS is allocated as follows:
|Years of practice in BC (at least 9 months of a year in BC = 1 LOS year)||Percentage of maximum LOS|
|1 - 4 years||20%|
|5 - 9 years||40%|
|10 - 14 years||60%|
|15 - 19 years||80%|
|20 years or more||100%|
|Annual gross eligible income||Percentage of LOS payable|
|$ 5,000 – $ 20,000||20%|
|$20,001 - $35,000||40%|
|$35,001 - $50,000||60%|
|$50,001 - $60,000||80%|
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 2018 CPRSP Basic and LOS benefits are not claimed by March 31, 2021, it will be forfeited and returned to the fund for redistribution.
On-line claims with sufficient proof of RRSP and/or TFSA or IPP contribution receipt(s) will be processed and reimbursed within two weeks.
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.
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 IPP only.
For tax-related questions we recommend that you seek advice from your accountant or financial planner.
For CPRSP inquiries, please contact Doctors of BC Benefits Department.
Telephone 604 638 2926
Toll Free 1 800 665 2262 ext 2926