Who can join the Saskatchewan Pension Plan?
Despite being a provincial initiative, the SPP is available to all Canadians. It is now the country’s 21st-largest defined contribution pension with over $800 million of investment assets and more than 33,000 members.
You can open an account online if you’re between the ages of 18 and 71. There are no minimum contributions, so deposits are entirely voluntary. You can contribute with automated withdrawals or lump sum deposits.
Contribution limits were originally quite low but in 2023, the SPP removed the annual contribution limit. Now, contributions are based on an accountholder’s registered retirement savings plan (RRSP) room, just like an RRSP account.
What can you invest in through the SPP?
The investment choices are simple: the Balanced Fund and the Diversified Income Fund. Investment fees for both are under 1% (0.91% and 0.89%, respectively), which is competitive.
Balanced Fund: Growth-focused investing
The Balanced Fund “invests in a diversified portfolio of equities, real estate, infrastructure, bonds, and mortgages. The target for the fund is to have 40% of investments in equities.” By equities, they mean publicly traded stocks in Canada and abroad.
This is a low-to-medium-risk investment option that is very diversified. The fund itself comprises investments managed by professional money managers like TD Asset Management, Leith Wheeler Investment Counsel Ltd., Ninepoint Partners LP, and Fengate Capital Management Ltd. A small investor may not otherwise be able to invest directly with these companies, but the SPP gives them access.
Diversified Income Fund: A conservative option
The Diversified Income Fund “invests in Canadian short-term investments, bonds, and mortgages with an equal target split between the two investment fund types.” It is a very low-risk option for conservative investors.
As of December 31, 2025, the 10-year annualized return for the Balanced Fund was 7.07%. The Diversified Income Fund was only introduced in 2020, with a 5-year annualized return of just 1.17%. The FTSE Canada Universe Bond Index lost 0.35% annualized over the same 5 years, so it was admittedly a rough period for bonds due to rising interest rates.
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Can you transfer RRSPs or pensions into the SPP?
You can transfer money on a tax deferred basis from other retirement accounts. The SPP allows transfers from:
Transfers must be done in cash since the SPP has just two proprietary investment options. You cannot transfer investments “as is” or “in kind” into the SPP. So, existing investments must be sold and the cash proceeds transferred on a tax deferred basis.
When and how can you withdraw from the SPP?
Since the SPP is technically structured as a defined contribution pension plan, there are limitations on your withdrawals. You cannot withdraw from the plan until age 55 as the funds are locked in.
You can defer withdrawals as late as age 71, but like an RRSP, minimum withdrawals must commence no later than the year you turn 72. Unlike an RRSP, there are maximum annual withdrawals to make sure your money lasts.
Withdrawals are eligible for the pension income amount tax credit as well as pension income splitting with your spouse or common law partner from age 55. RRSPs that have been converted to RRIFs do not qualify until age 65.
How the SPP works for employers
The SPP provides a simple and flexible option for an employer looking to introduce a company pension plan. There are no fees for the employer, no commitment period, and no minimum number of employees.
The employer can make contributions as a lump sum or on a matching basis (i.e., matching contributions by an employee) through payroll. Member service reps provide all the support needed, which means the employer isn’t tasked with managing the plan.
Is the SPP worth considering?
The SPP is not for everyone, but it offers two relatively conservative investment options. It is a pension plan, so transfers and contributions are locked in and there are restrictions on withdrawals.
