Amend a deferred profit sharing plan - Amendments and their requirements

From: Canada Revenue Agency

1. Type of amendments and their requirements

After a deferred profit sharing plan (DPSP) is registered it may be amended for several reasons.

• Plan name change
• Employer name change
• Adding or removing an employer
• Trustee change
• Change to an approved specimen plan
• Change from one specimen plan to another specimen plan
• Change from one specimen plan to a customized plan

Plan name change

When changing the plan name, the employer or trustee must send us a letter or board resolution stating the effective date of the change along with the amended plan text and trust agreement.

Employer name change

When changing the employer name, the employer or trustee must send us a letter stating the effective date of the change and one of the following:

• an amendment to the plan text and trust agreement
• a board resolution outlining the name change
• a copy of the letters patent or supplementary letters patent
• a certificate of amendment or amalgamation 

Adding or removing an employer

The sponsoring employer may allow another employer to join a plan. Both employers must provide us with their business number and the effective date of this change.

• The existing employer must send a board resolution or amendment to the plan terms offering participation to the new employer.
• The new employer must send a board resolution or letter agreeing to join the plan and accept the plan terms.
• If the plan text does not allow for any employers to be added, an amendment must be submitted before we can accept an additional employer.

When a secondary employer no longer wants to be in the plan, that employer must send us a letter or board resolution stating the date they left the plan. The trustee must send us a letter stating the date that the funds were distributed to the beneficiaries. The plan will remain registered as a DPSP in the name of the remaining employer(s). When the last employer chooses to leave the plan, follow the procedures listed on the page, Closing a deferred profit sharing plan.

Trustee change

When there is a change in trustee, we need confirmation from both the employer and the new trustee. The employer must send us a board resolution, letter and new trust agreement. The letter or board resolution must state the effective date of the change and the name and address of the individual trustee being replaced, or the replacing trust company. A letter from the successor trustee stating that they accept the position must also be included. 

Change to an approved specimen plan

Once a specimen plan has been approved, the submitter may change the plan text, as well as add or delete variables. The submitter must send us a letter stating the effective date of the change, identifying what is being amended, and certifying that all sponsoring employers are aware of the change. Once we approve the amendment, the submitter must send a list of all plans affected by the change.

Change from one specimen plan to another specimen plan

If an employer switches from one specimen plan to another, they must send us a letter or board resolution with the name and number of the new specimen plan, the effective date of the change, any selected variables, and if applicable the names and addresses of the individual trustees.

Change from a specimen plan to a customized plan

If an employer has a DPSP based on an approved specimen plan but wants to have provisions or variables that are not provided under the specimen plan, a new plan text and trust agreement must be set up. The employer or trustee must send us a copy of the new plan text and trust agreement, along with a letter or board resolution stating the effective date of the change.