Who can join the Saskatchewan Pension Plan?
Despite being a provincial program, the SPP is available to all Canadians. It is now the country’s 21stSt-the largest defined benefit pension with over $800 million in investment assets and over 33,000 members.
You can open an account online if you are between the ages of 18 and 71. There are no minimum contributions, so deposits are completely voluntary. You can contribute by making automatic withdrawals or by making a lump sum deposit.
Contribution limits were quite low but in 2023, the SPP removed the annual contribution limit. Now, contributions are based on the owner’s registered retirement savings account (RRSP) account, such as an RRSP account.
What can you invest in with SPP?
The investment options are simple: Balanced Fund and Diversified Income Fund. Investment fees for both are less than 1% (0.91% and 0.89% respectively), which is competitive.
Balanced Fund: Investment focused on growth
The Balanced Fund “invests in a diversified portfolio of stocks, real estate, infrastructure, bonds, and mortgages. The fund’s objective is to have a 40% investment in stocks.” By stocks, we mean publicly traded stocks in Canada and other countries.
This is a very diversified low to medium risk investment option. The fund itself includes investments managed by professional money managers such as TD Asset Management, Leith Wheeler Investment Counsel Ltd., Ninepoint Partners LP, and Fengate Capital Management Ltd. A small investor may not be able to invest directly with these companies, but SPP gives them access.
Diversified Income Fund: A savings option
The Diversified Income Fund “invests in Canadian short-term investments, bonds, and mortgages with an equal objective of diversification between the two types of investment fund.” It is a very low-risk option for conservative investors.
As of December 31, 2025, the 10-year return for the Balanced Fund was 7.07%. The Diversified Income Fund was introduced only in 2020, with a 5-year return of 1.17%. The FTSE Canada Universe Bond Index lost 0.35% annually over the same 5-year period, so it was a tough time for bonds due to rising interest rates.
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Can you transfer RRSPs or pensions to an SPP?
You can transfer money on a tax-deferred basis from other retirement accounts. SPP allows transfers from:
Transfers must be made in cash as SPP has only two proprietary investment options. You cannot transfer an investment “as is” or “as is” to SPP. Therefore, existing investments should be sold and the proceeds transferred on a tax-deferred basis.
When and how can you withdraw from SPP?
As the SPP is technically structured as a defined benefit pension plan, there are restrictions on your withdrawals. You cannot withdraw from the plan until you are 55 years old as the funds are locked up.
You can delay withdrawals until you’re 71, but like an RRSP, minimum withdrawals must begin no later than your 72nd birthday. Unlike an RRSP, there is a maximum annual withdrawal to ensure that your money lasts forever.
Withdrawals are subject to credit for the amount of pension tax and the splitting of pensions with your spouse or common-law partner from the age of 55. RRSPs converted to RRIFs are not eligible until age 65.
How SPP works for employers
SPP offers a simple and flexible option for an employer who wants to introduce a company pension plan. There are no employer fees, no commitment period, and no minimum number of employees.
The employer can make contributions as a lump sum or matching (that is, matching the employee’s contributions) through payroll. Member service attorneys provide all the necessary support, meaning the employer has no responsibility to manage the plan.
Is SPP worth considering?
SPP is not for everyone, but it offers two solid investment options. It is a pension scheme, so transfers and contributions are restricted and there are restrictions on withdrawals.
