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 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.

Highlights For 2020 CPRSP

  1. You no longer have to match your CPRSP benefit.  However, as we are reimbursing your checking account the benefit amount, we need confirmation that you have made your deposit to your RRSP and/or TFSA first.
  2. You may deposit the CPRSP benefit in both an RRSP and a Tax Free Savings Account. We will reimburse your banking details, linked to CPRSP Benefit Payments, up to your benefit amount once you have done so.
  3. You may withdraw CPRSP funds from your RRSP for the Home Buyers’ Plan and/or Lifelong Learning Plan.
  4. Enjoy the convenience of online claims and direct payment processes. Paper claims will no longer be required in favour of a simplified on-line claims process. As well, we will no longer be issuing cheques to the investment company, and instead will reimburse your contribution (up to your CPRSP benefit amount) by direct deposit to your bank account within two weeks of your claim submission and proof of contribution.

 

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
  • reimburse to 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 $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. 

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 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 0%
$ 5,000 – $ 20,000 20%
$20,001 - $35,000 40%
$35,001 - $50,000 60%
$50,001 - $60,000 80%
> $60,000  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 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.

Forms and more information

Email: benefits@doctorsofbc.ca

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 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 benefits@doctorsofbc.ca

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