The addition of a DPSP, an employer-sponsored deferred profit sharing plan
, to FutureStep now gives an employer the option of linking plan contributions to the profitability of the business and, on a periodic basis, sharing business profits with employees by contributing to the DPSP on each employee s behalf.
DES MOINES, Iowa -- The Principal Financial Group(R), the nation's 401(k) leader and a total retirement solutions innovator, today announced it was selected to provide custodian and recordkeeping services for the deferred profit sharing plans
(DPSP) of the Magna International Inc.
To the Company's knowledge, the only two shareholder groups which beneficially own or exercise control over more than 10% of the voting rights attached to the outstanding Class A Common Shares of the Company-the Deferred Profit Sharing Plan
of the Company and the Ontario Municipal Employees Retirement Fund-have indicated their support for the share restructuring.
Under current legislation, the Company's common shares will no longer be foreign property for a deferred profit sharing plan
, a registered savings plan or a registered income fund.
Note that Group Registered Retirement Savings Plans and Deferred Profit Sharing Plans
are not considered comparable plans for this purpose.
The pension adjustment ensures that taxpayers whose employers make contributions to registered pension plans or deferred profit sharing plans
on behalf of employees cannot double up their retirement savings.
Deferred income plans, such as registered pension plans, registered retirement savings plans, registered retirement income funds and deferred profit sharing plans
, are able to exclude the exchangeable shares from inclusion in the 20% "foreign property" limits, provided that the exchangeable shares are listed on a stock exchange that is prescribed for Canadian tax purposes.