Deferred Profit Sharing Plan (DPSP)

Canada has great beer and hockey, some great musicians (Rush, Arcade Fire, Neil Young, Joni MItchell), and some good ideas about corporate compensation.

Canada’s Deferred Profit Sharing Plan (DPSP) is an added component to give flexibility in retirement benefits. Companies get to write off periodic profit sharing among all employees, and it goes into tax deferred status to be either invested or transferred into a retirement account, or withdrawn and taxed.

Now if Canada could cut their extraneous and redundant taxes so that companies had more of a profit to actually share, the DPSP could be a major model for other countries’ global corporate compensation reform, instead of a sidebar.