View source for Saskatchewan Pension Plan

{{Short description|Canadian provincial voluntary plan}}
{{COI|date=March 2022}}
The '''Saskatchewan Pension Plan''' ('''SPP''') is a voluntary [[Defined contribution plan|defined contribution]] pension plan created by the [[Saskatchewan|Government of Saskatchewan]]. The SPP was created through The Saskatchewan Pension Plan Act .<ref>{{cite web |url=https://publications.saskatchewan.ca/api/v1/products/863/formats/1363/download |title=Statutes |website=publications.saskatchewan.ca|access-date=2022-03-29}}</ref> Oversight of the plan rests with the Saskatchewan Pension Plan Board of Trustees. The plan is also open to both residents (over the age of 18) of Saskatchewan and other provinces.<ref>{{cite web|url=https://www.youtube.com/watch?v=-rI4NwtnljQ |archive-url=https://ghostarchive.org/varchive/youtube/20211215/-rI4NwtnljQ |archive-date=2021-12-15 |url-status=live|title=How to: Become a member of SPP|last=Saskatchewan Pension Plan|date=18 February 2014|publisher=|via=YouTube}}{{cbignore}}</ref> Saskatchewan is the only province in Canada that operates a voluntary pension plan of this nature. The plan has assets of $700&nbsp;million and over 32,000 members.<ref>{{cite web|url=https://www.saskpension.com/|title=Home - Saskatchewan Pension Plan|website=www.saskpension.com}}</ref> The maximum annual individual contribution is $7,000, indexed annually according to the change in the Year's Maximum Pensionable Earnings.<ref>{{cite web|url=https://www.cbc.ca/news/canada/saskatchewan/saskatchewan-pension-plan-limit-increase-1.4510576|title=CBC News - Sask. Pension Plan more than doubles annual contribution limit}}</ref>

== History ==
Over the last several years, the amount of money that a person can contribute annually to the Saskatchewan Pension Plan has grown from $600, to $2,500, and now to $7,000.<ref>{{cite web|url=https://www.saskpension.com/contribution-amount-history/|title=Contribution Amount History|work=Saskatchewan Pension Plan }}</ref> This means participants have the ability to save a substantial amount of money in a retirement plan which delivers a real pension is now possible. Additionally, the SPP allows its members to transfer up to $10,000 per year from their RRSP investments to the plan.<ref>{{cite web|url=https://www.saskpension.com/personal/pension-features/transfer-in/|title=Transfers to SPP - Saskatchewan Pension Plan|website=www.saskpension.com}}</ref> This means that total contributions can easily amount to $7,000 + $10,000 = $17,000 annually, which is a beneficial strategy for anyone wanting to contribute more than the $7,000 annual limit.<ref>{{cite web|url=https://www.youtube.com/watch?v=KExP6HqN08w|url-status=dead|title=Transferring money to SPP|last=Saskatchewan Pension Plan|date=23 January 2020|publisher=|via=YouTube|access-date=29 March 2022|archive-date=29 March 2022|archive-url=https://web.archive.org/web/20220329221651/https://www.youtube.com/watch?v=KExP6HqN08w}}</ref> Through the power of compound interest substantial growth can be experienced over the years on these contributions.<ref>{{cite web|url=https://www.youtube.com/watch?v=t3EVu4TdFqE |archive-url=https://ghostarchive.org/varchive/youtube/20211215/t3EVu4TdFqE |archive-date=2021-12-15 |url-status=live|title=Investment term: compound interest|last=Saskatchewan Pension Plan|date=6 September 2016|publisher=|via=YouTube}}{{cbignore}}</ref>

== Locked-in provision == 
Money invested in the SPP is locked-in until retirement, which means it cannot be withdrawn except as stipulated in the Regulations of the plan. There are specific provisions for the division of monies invested during marital breakdown. Additionally, the Member Handbook declares that, "the only way SPP funds can be claimed or seized is following an order under The Enforcement of Maintenance Orders Act,<ref>{{cite web |url=https://publications.saskatchewan.ca/api/v1/products/509/formats/658/download |title= Statutes|last= |first= |date= |website=publications.saskatchewan.ca |access-date=2022-03-29}}</ref> 1997."<ref>{{cite web |url= https://www.saskpension.com/wp-content/uploads/2019/10/membership_application.pdf|title=Member guide |website=www.saskpension.com |access-date=2022-03-29}}</ref> Thus, money invested in SPP is by definition a long-term investment and is offered some protections from seizure. This can be very advantageous to people trying to save for retirement as their money is safe both from them spending it (because it is locked-in) and some legal protections keep other people from getting at it. A final important point is that money invested in an SPP account grows tax exempt because it has the same tax status as a Registered Retirement Savings Plan (RRSP).

== Investing == 
The SPP offers two funds, the Balanced Fund (BF)<ref>{{cite web |url=https://www.saskpension.com/wp-content/uploads/2019/12/SPP-funds-facts-BF.pdf|title=Funds facts |website=www.saskpension.com |access-date=2022-03-29}}</ref> and Diversified Income Fund (DIF) formerly Short-term fund.<ref>{{cite web |url=https://www.saskpension.com/wp-content/uploads/2020/05/SPP-funds-facts-DIF.pdf |title= Funds facts|website=www.saskpension.com |access-date=2022-03-29}}</ref> The BF is targeted for long-term growth of capital and has medium volatility, while the DIF provides a low risk option that offers income from diversified sources.<ref>{{cite web |url=https://www.saskpension.com/wp-content/uploads/2019/10/membership_application.pdf|title=Member guide |website=www.saskpension.com |access-date=2022-03-29}}</ref> Members are able to set an allocation of their investments between these two funds to match their [[Risk|risk tolerance]] and other investment goals.<ref>{{cite web |url=https://www.saskpension.com/wp-content/uploads/2019/09/Investment_Choice.pdf |title=Investments choice |website=www.saskpension.com |access-date=2022-03-29}}</ref>
The low [[Expense ratio|management expense ratio]] (MER) of the SPP means your money enjoys better long term growth.<ref>{{cite web|url=https://www.youtube.com/watch?v=WdkiwwK08qU |archive-url=https://ghostarchive.org/varchive/youtube/20211215/WdkiwwK08qU |archive-date=2021-12-15 |url-status=live|title=Why fees matter to your investments?|last=Saskatchewan Pension Plan|date=12 July 2016|publisher=|via=YouTube}}{{cbignore}}</ref> The MER on the BF has a historical range of 0.79%–1.24%.<ref>{{cite web|url=https://www.saskpension.com/personal/investment-options/performance-fund-info/#returns |title=History - Saskatchewan Pension Plan|website=www.saskpension.com}}</ref> Moreover, the average annual rate of return (earnings) on the BF fund since inception has been 8.10%.<ref>{{cite web|url=https://www.saskpension.com/fund-performance-history/|title=Fund Performance History - Saskatchewan Pension Plan|website=www.saskpension.com}}</ref>

== Retirement == 
Planning for retirement is a dilemma{{clarify|date=May 2025}} faced by many{{quantify|date=May 2025}} Canadians{{who|date=May 2025}}, and often{{when|date=May 2025}} necessitates developing a strategy{{explain|date=May 2025}} to have multiple streams of income during retirement years.{{citation needed|date=May 2025}} The SPP can help bridge the gap between Old Age Security, the [[Canada Pension Plan]], [[Tax-Free Savings Account|TFSA]]s, [[Registered Retirement Savings Plan|RRSP]]s, personal savings, and an employer pension plan to offer additional financial security during retirement. The money contributed to the SPP can be converted to an [[annuity]],<ref>{{cite web|url=https://www.youtube.com/watch?v=0dKqKscEAPQ |title=SPP: Retirement Options - SPP|last=Saskatchewan Pension Plan|date=17 May 2021|publisher=|via=YouTube}}</ref> [[Locked-In Retirement Account|locked-in retirement account]], or [https://www.canadalife.com/investing-saving/retirement/retirement-income/prescribed-registered-retirement-income-fund-prrif.html prescribed registered retirement income fund].<ref>{{cite web |url=https://www.saskpension.com/wp-content/uploads/2019/10/retirement_guide.pdf |title= Retirement guide |website=www.saskpension.com |access-date=2022-03-29}}</ref> In 2021 they introduced a Variable Benefit<ref>{{cite web |url=https://www.saskpension.com/wp-content/uploads/2020/10/SPP-Variable-Benefit-2020.pdf |title= Variable Benefit guide |website=www.saskpension.com |access-date=2022-03-29}}</ref> option for members in Saskatchewan. The retirement options available to SPP members are covered on the SPP website.<ref>{{cite web|url=https://www.saskpension.com/personal/how-to-collect/|title=Pension Collection Options|website=www.saskpension.com|access-date=2022-03-29}}</ref> Retirement from SPP must take place between the ages of 55 and 71.

==References==
<references/>

==External links==
*{{official|https://www.saskpension.com }}
*[https://publications.saskatchewan.ca/api/v1/products/863/formats/1363/download The Saskatchewan Pension Plan Act - The Queen's Printer]

[[Category:Public pension funds in Canada]]
[[Category:Economy of Saskatchewan]]