What is 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 2024 is $12,600 (Basic $6,900 and LOS of $5,700).
Each fall Doctors of BC calculates a CPRSP benefit for physicians to claim via the Doctors of BC website. Contributions to RRSP, TFSA, IPP or RPP can be reimbursed up to the CPRSP Basic and LOS benefit amounts available.
Reminder and new for 2024 CPRSP
- The full CPRSP Basic and LOS benefits are for your retirement savings. It is calculated annually to encourage BC physicians to save annually/regularly towards their retirement.
- RRSP and TFSA claims only: You do not need to attach your RRSP/TFSA deposit documentation upfront with your online claim; however, you may be selected to provide proof of contribution to Doctors of BC at a later date.
Make sure to contribute to your RRSP/TFSA either in the benefit year that you are claiming, or prior to or immediately after submitting your online claim and receiving the benefit.
For physicians who are not a member of Doctors of BC and have administration fee balances, your reimbursement will be net of administration fees. However, upon request, your proof of contribution needs to be for the full CPRSP benefit amount claimed.
RRSP/TFSA deposits made after receiving a notice to provide proof of contribution to Doctors of BC will not be accepted.
Important: Please retain your RRSP/TFSA deposit documentation for a two-year period in case you are selected to provide proof of contribution. Failure to provide documentation will result in a claw back of the unsubstantiated amount from your future CPRSP Benefit. You do not need to return the CPRSP benefits claimed. - Corporate Registered Pension Plan (RPP) was introduced to CPRSP in 2023. Similar to Corporate Individual Pension Plan (IPP), deposit confirmations will be required with the online claim.
If you have closed your IPP or have recently set one up or have an RPP, please reach out to us.
The Medicus Pension Plan™, established by MD Financial Management Inc. and Scotiabank, is the first-ever multi-employer pension plan for Canada’s incorporated physicians. It is eligible for CPRSP claims.
Speak to your financial advisor about the Medicus RPP option for your retirement planning.
Eligibility
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 RRSP (where you are the registered contributor) and your spouse is 71 years old or younger.
- Have a personal Tax-Free Savings Account (TFSA).
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; and/or
- your personal TFSA.
The CPRSP benefit can also be reimbursed to your corporation for contributions made to:
- your corporation's IPP (Individual Pension Plan) or RPP (Registered Pension Plan).
CPRSP calculation
Basic benefit
- The Basic benefit is based on your prior calendar year’s eligible income and the practice type assigned to you by MSP, which will determine your net income.
- Net income of $100,000 = maximum Basic benefit = $6,900 in 2024
- You need to deposit this amount into your RRSP and/or TFSA or corporation’s IPP or RPP prior to claiming a reimbursement from the CPRSP.
LOS benefit
- The Length of Service (LOS) benefit is based on your prior calendar year’s eligible income and the number of years you have practiced in BC where 1 year is at least 9 months of medical practice in the province.
- The maximum benefit of $5,700 in 2024 will be paid if you:
- Have practiced in BC for 20 LOS years or more, and meet the minimum income threshold.
- Have deposited this equivalent amount into your RRSP and/or TFSA or corporation’s IPP or RPP 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 - $ 10,000 | 20% |
| $10,001 - $25,000 | 40% |
| $25,001 - $40,000 | 60% |
| $40,001 - $50,000 | 80% |
| > $50,001 | 100% |
Forms and deadlines
Application deadlines and forfeiture
The CPRSP is calculated each year in the fall and normally available in November.
Once your benefits become available, you have two and a half years to make a claim before they expire and are forfeited. For instance, if your 2023 CPRSP Basic and LOS benefits remain unclaimed by March 31, 2026, they will be forfeited and returned to the fund for redistribution.
Make a claim online
Log into your member area Benefits page and select Claim Contributory Professional Retirement Savings Plan.
Online claims will be processed and reimbursed within three weeks if not sooner.
Claim considerations
- RRSP/TFSAs: Make sure to contribute to your RRSP/TFSA either in the benefit year that you are claiming or prior to or immediately after submitting your online claim and receiving the benefit. RRSP/TFSA deposits made after receiving a notice to provide proof of contribution to Doctors of BC will not be accepted.
- Bank account: Direct deposits are sent to the physician’s bank account on record only—there is no option to send CPRSP funds to any third parties directly. We typically suggest using a Personal account for your CPRSP deposits. Should you choose to use your Corporate account, please discuss any tax implications with your accountant. Please do not enter your RRSP/TFSA account information as we reimburse your bank account, not depositing directly to your RRSP/TFSA.
- RRSP/TFSA deposit documentation: You do not need to attach your RRSP/TFSA deposit documentation upfront with your online claim; however, you may be selected to provide proof of contribution at a later date.
For detailed information, please consult the following:
Payment for non-members
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.
Please review your membership category to make sure it is accurate, even if you are choosing not to renew.
If selected to provide proof of contribution, your RRSP/TFSA contribution documentation needs to be a minimum of the total claim amount, not the amount net of administration fees.
An administration fee receipt will be issued to you in February of the following year.
Income tax
CPRSP benefits are considered taxable and as such a T4A will be issued to you for amounts claimed in the calendar year.
A T4A is not issued when the CPRSP benefit is paid to your corporation for Corporation’s IPP or RPP only.
For tax-related questions we recommend that you seek advice from your accountant or financial planner.