Embedded Files
About Group Registered Retirement Savings Plans (GRRSP)
A group Registered Retirement Savings Plan (RRSP) is similar to an individual RRSP, but administered by Our Company. Employees have the choice to make contributions by pay-roll deduction after 6-months of working with Our Company. Contributions are made through a Plan Administrator. Employee contributions must be over 4% and contributions are matched by the employer towards a DPSP based on the employees' years of service with Our Company and continuous contribution. Employees do not pay taxes on contributions until retirement or termination.
Eligibility
All full-time and part-time employees who have worked at Our Company for a minimum of 6-months are eligible.
Eligible to contribute until December 31, of the year the employee turns 71 or earlier retirement.
Employees must contribute between 4% to 18% of their income to be eligible.
An employee can contribute up to 18% of their earned income reported on the tax return in the previous year.
Retirement or Terminations
On retirement the plan member can take money as cash, purchase an annuity or Registered Retirement Income Fund (RRIF).
Funding is allocated into specific employee accounts which they can then choose to further allocate into their investment decisions such as mutual funds, GICs, bonds, stocks, etc.
Vesting starts at two-year plan membership. This means the employee is entitled to all contributions (including employers') on retirement or termination, which can be transferred into another RRSP or RRIF.
Contributions
Employees must contribute between 4% to 18% of their income to be eligible.
Employees are encouraged to contribute as the employer will match a percentage of contributions towards the same employee's DPSP account based on years of service (See Chart Below).
An employee can contribute up to 18% of their earned income reported on the tax return in the previous year.
The CRA allows individuals to carry forward the unused contribution room.
About Deferred Profit Sharing Plans (DPSP)
A DPSP is a plan in which the employer contributes a share of the profits to all participating employees and places it in a trust account. This account will be used when employees met certain sales targets and goals to share a percentage of the compare profits determined by the employer on a monthly basis.
In addition, Our Company will make contributions to an employee's DPSP which match the contributions the employee makes to their Group RRSP account.
Eligibility
All full-time and part-time employees who have worked at Our Company for a minimum of 6-months are eligible.
Only the employer can contribute to a DPSP account.
An employee should be aware of the pension adjustment on their group RRSP.
Retirement or Terminations
On retirement the plan member can take money as cash, purchase an annuity or Registered Retirement Income Fund (RRIF).
Vesting starts at two-year plan membership. This means the employee is entitled to all contributions (including employers') on retirement or termination, which can be transferred into another RRSP or RRIF.
Contributions
Employer will match a percentage of contributions towards the same employee's DPSP account based on employee years of service (See Chart Below).
The employer will make contributions in the form on a portion of their profits based on employees who meet monthly sales and production targets.
How to Enroll
All employees can enroll by contacting their Plan Administrator or HR Manager at: (905)-555-6820
Or enroll online at: Our Company Pension Enrollment
Employer Contribution Chart
The amount matched by Our Company will start at 40% of contributions, then increase to 100% over the course of continuous employee contribution and years of service with Our Company.
For example, if an employee chooses to contribute 4% of his annual income, and is in his first year of contributions, the employer will match 40% of the 4% in a DPSP account (totaling 1.6% of the employees’ annual income). See the chart below for your specific contribution match percentage.
Contact
Google Sites
Report abuse