December 2023 Edition

The contribution limits per plan for the year are as follows:

The information in this article is intended for general information only and should not be considered as tax advice. While reasonable steps have been taken to ensure the accuracy of this information, Desjardins Insurance makes no representations and offers no guarantee as to the accuracy of this information, which may no longer be current, complete or accurate.

As a cooperative financial group, the financial empowerment of our members and clients is at the heart of our purpose. We provide them with the support they need to sustainably manage their finances and achieve their goals.

November was Financial Literacy Month, so we took the opportunity to help plan members under the age of 50 improve their financial knowledge by providing them with a special quiz show they could watch, and promoting the resources in their online account.

Inspired by Desjardins’ mission to help plan members become financially empowered, our quiz show covers 3 topics: emergency funds, managing income and expenses, and estate planning. We aim to help your plan members make informed decisions and turn their goals into action with a variety of resources available in the Wellness centre of their online account.

As announced in the October issue, we sent plan members emails on November 9 and November 22 to encourage them to improve their financial knowledge. Those who didn’t open either of the first 2 emails received a reminder on November 30.

Did you miss the campaign homepage?

Take a look! External link. Opens in a new window.

With tax season just around the corner, it’s time to start thinking about producing your employees’ T4s (Canada) and RL-1s (Quebec).

Refer to the table below to see how to calculate the amounts to include on these slips for contributions made between January 1, 2023, and December 31, 2023^{[ Note 7 ]}.

Registered pension plans (RPP): Simplified pension plan (SPP) and Defined contribution pension plan (DC)

Complete box 50 of the T4 slip (RPP or DPSP registration number). Enter the Canada Revenue Agency (CRA) registration number that Desjardins Insurance provided when the plan was implemented. This number can also be found in the confirmation letter sent to you by the CRA.

Deferred Profit Sharing Plan (DPSPs)

Complete box 50 of the T4 slip (RPP or DPSP registration number). Enter the CRA registration number that Desjardins Insurance provided when the plan was implemented. This number can also be found in the confirmation letter sent to you by the CRA.

To learn more, see the Pension Adjustment Guide External link. Opens in a new window. and the Employers’ Guide - Filing the T4 Slip and Summary External link. Opens in a new window. on the CRA website, and the Guide to Filing the RL-1 Slip External link. Opens in a new window. on the Revenue Québec website.

Reminder on contribution limits^{[ Note 10 ]}

RPP: The lesser of the following 2 amounts:

• 18% of an employee’s current annual compensation, as defined by “compensation” in the Income Tax Act, section 147.1 (1). For the purposes of this plan, compensation may also include amounts prescribed in section 8507 of the Income Tax Regulations for periods when the plan member’s earnings are less than normal due to disability, leaves of absence or other admissible periods.
• The maximum contribution allowed under a DC for a given year.

DPSP: The lesser of the following 2 amounts:

• 18% of an employee’s current annual compensation, as defined by “compensation” in the Income Tax Act, section 147.1 (1).
• The maximum annual contribution allowed under a DPSP.

You can find the annual contribution limits on the CRA website External link. Opens in a new window..

The information in this article is intended for general information only and should not be considered as tax advice. Responsibility for producing T4A and Relevé 1 rests with the employer. While reasonable steps have been taken to ensure the accuracy of this information, Desjardins Insurance makes no representations and offers no guarantee as to the accuracy of this information, which may no longer be current, complete or accurate.

Deadlines for including contributions in the 2023 tax year

Be sure to send your remittances before December 21. Plan members wanting to make lump-sum contributions must do so by December 29.

* For RRSP or VRSP contributions to be included on the receipt for the period of March 2 to December 31, 2023, you must send us your remittances by December 21, 2023.

** RRSP or VRSP contributions received after 4 p.m. on December 29 will be included on the receipt for the first 60 days of 2024 (January 1 to February 29, 2024). This receipt can be used for 2023 tax returns.

Annual Information Return (AIR) deadline reminder

In general, the filing deadline is 180 days (or 6 months) after the end of the plan’s fiscal year. There may be exceptions so check with the regulatory authority in your province to avoid late-filing penalties and to know the fees payable by plan members, if applicable.

Depending on the type of plan, Desjardins Insurance may produce the AIR for you automatically, or include the option to do so in the service offering:

• Automatically: simplified pension plan (SPP), TFSA, VRSP
• Optional: defined contribution (DC) pension plan, defined benefit (DB) pension plan

Holiday business hours

• Plan Sponsor Services

• Customer Contact Centre (CCC)

Transactions submitted after 4 p.m. (ET) or on a holiday will be processed the next business day.

Reports posted in the Personalized extract section will now be deleted after 1 year.

This process is designed to ensure the safekeeping of plan members’ personal information.

To download your reports:

• Log on to your account on the plan sponsor website accessible via dfs.ca/plansponsor
• Click the Report centre tile
• Select Personalized extract
• Choose the subgroup (if applicable) and the category
• Click View and then the date of the report you want to download

PineStone

Thomas Horvath, Lead Analyst, has recently been promoted to Portfolio Manager of the Global Small-Cap Equity strategy. He’s been replaced by Ivana Miladinovic, who’s been promoted to Lead Analyst and is now responsible for covering Thomas’ sectors. Ivana’s transition will take place gradually over the next 12 to 18 months.

The Desjardins Insurance Group Retirement Savings Investment Solutions team considers this change to have a moderate impact on the Fiera Global Equity Fund, for which PineStone acts as sub-advisor. In fact, we believe that the team in place at PineStone has the capacity to manage an additional strategy. Nevertheless, we’ll be monitoring the situation over the coming quarters and will provide updates as necessary.

Jarislowsky Fraser

On November 8, 2023, Jarislowsky Fraser announced that Maxime Ménard had decided to step down as President and CEO of the firm. His transition period will last until the end of 2023. Maxime also chaired Jarislowsky Fraser’s Management Committee, the firm’s central decision-making body. This 4-member committee will now report to Neal Kerr, Executive Vice-President, Asset Management at Scotiabank.

The Desjardins Insurance Group Retirement Savings Investment Solutions team sees this change as having a major impact on the Jarislowsky Fraser Canadian Equity Fund and the Jarislowsky Fraser Balanced Fund. Indeed, Maxime has been with Jarislowsky Fraser for 20 years and has ensured the preservation of the firm’s culture and the stability of its key personnel since its takeover by Scotiabank in 2018.

His departure brings uncertainty about the preservation of Jarislowsky Fraser’s culture, in a context where several of the firm’s functions have been transferred to Scotiabank over the past year. His departure also raises concerns about the future instability of the firm’s key personnel, particularly with the expiration of the 5-year retention plan put in place in 2018.

CC&L

CC&L recently announced the retirement of Mark Bridges, Portfolio Manager and Head of Research in the Fundamental Equity team, effective December 31, 2023. Mark was also responsible for covering companies in the energy sector.

His role as Head of Research for the Fundamental Equity team will be transferred to Michael McPhillips, Portfolio Manager in the same team. Brian Milne, currently Senior Credit Analyst in the Fixed Income team, will take over coverage of the energy sector for the Fundamental Equity team. Brian’s responsibilities within the Fixed Income team will be transferred over time to another member of the Credit team.

The Desjardins Insurance Group Retirement Savings Investment Solutions team considers this change to have a major impact on the CC&L Canadian Equity Fund, the CC&L Bond Fund and the CC&L Long-Term Bond Fund. However, it considers that the transfer of responsibilities resulting from Mark’s retirement doesn’t give rise to any major concerns, particularly as he’s worked closely with Brian Milne over the past few years. In addition, the role of Research Director is seen as more operational, and is being taken over by Michael McPhillips, who covers relatively less important sectors in the index (consumer discretionary and real estate).

Nevertheless, we’ll be keeping an eye on the situation over the next few quarters and will provide updates as necessary.