Retirement Compensation Arrangements
An RCA can be a fit when traditional registered plans are not enough and you want a structured way to build supplemental retirement capital.
Typically used for high-income earners where RRSP room is limited
Can be used in corporate settings and in select owner-managed planning
Requires careful design, administration, and coordination with tax professionals
When an RCA is worth exploring
High income, limited RRSP room
If retirement saving goals exceed what registered plans can realistically support, an RCA may be considered as a supplemental layer.
Executive retention planning
Some corporations use RCAs as part of compensation strategy to retain key executives with structured, long-term benefits.
Need for governance and clarity
RCAs involve specific rules and ongoing administration. The right fit is usually where structure and long-term intent matter.
How an RCA works, in plain language
An RCA is designed to provide supplemental retirement benefits. Contributions, investment growth, and eventual payouts follow specific tax rules. That is why an RCA should be evaluated with proper modeling and professional coordination.
Step 1
Design the plan and the objective
We clarify who the plan is for, how it integrates with existing compensation, and what the retirement goal looks like.
Step 2
Model contributions and long-term outcomes
We stress-test funding schedules, investment assumptions, and what the benefit stream could look like under different scenarios.
Step 3
Coordinate setup and ongoing administration
RCAs require the right legal and tax setup, plus consistent reporting and administration over time.
Key planning considerations
How the RCA integrates with existing retirement income planning
Administrative requirements and long-term upkeep
Liquidity planning for eventual benefit payments
Coordination with your tax and legal professionals
RCAs are specialized. The right approach depends on your facts, your income profile, and how the plan is being used.
Why clients consider this structure
Supplemental retirement accumulation
For the right situation, an RCA can support retirement objectives that are difficult to achieve through standard registered planning alone.
Structure and oversight
When designed properly, the plan provides defined rules, governance, and a clear framework for long-term execution.