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Group Pension Plan

Select the ideal pension plan

In order to assist your employees in planning their retirement properly, there are many types of savings plans. Since each has its own advantages, it is vital to find the plan that suits the needs of both employer and employees.

In order to assist your employees in planning their retirement properly, there are many types of savings plans. Since each has its own advantages, it is vital to find the plan that suits the needs of both employer and employees.


Group RRSP

A group RRSP allows simplified administrative management for employers and its understanding is accessible for employees, without prior training. Employee RRSP contributions are paid by a pre-tax salary deduction. This type of plan offers flexibility in terms of retirements, terminations and retirement income options. Moreover, employees are able to withdraw money from the RRSP to buy a house or pay for their studies, as long as they reimburse the amounts withdrawn in order to avoid income tax.


VRSP: voluntary retirement savings plan

The Québec voluntary retirement savings plan (VRSP) is the perfect tool for small and medium-sized companies (SME), self-employed workers and individual savers. The VRSP represents a flexible and affordable solution to help employees save for their retirement. Combining assets in one plan allows economies of scale and taking advantage of fees that are lower than those for individuals. It is easy to set up and manage. If your company has more than five employees, it is required to offer its members who do not have the possibility of contributing through wage deductions to an RRSP or a TFSA and do not participate in any other plan offered by the employer.


DPSP: deferred profit-sharing plan

This trust plan (administered by a third party) in which the employer shares his company’s profits with all of the employees or a designated group of them is generally offered to complement an RRSP. The deferred profit-sharing plan allows rewarding employees for their contribution to the financial success of the company.


SIPP: Québec simplified pension plan

The Québec simplified pension plan has defined contributions made by the employer alone or both the employer and employees. It is designed to reduce the administrative burden for employers and also avoids the need to have a retirement committee. It is ideal for small companies, is as easy to establish as a group RRSP and has all the advantages of a pension plan.


IPP

Custom-designed for the owners and heads of companies who wish to optimize their retirement income. The retirement income generated by an individual pension plan (IPP) is higher than that generated by the RRSP. The annual amount of contributions is determined by an actuary as a function of such factors as age or income. Perfect for ensuring the loyalty of key company employees. The savings are larger than RRSP. Retirement income is guaranteed and protected against creditors.


GROUP TFSA

Contributions to a TFSA consist of funds available after taxes. The TFSA grows sheltered from tax and can be used to achieve short or long term objectives. As a complement to an RRSP, especially when the plan covers people with high incomes or provides a generous contribution formula and the participants are at risk of exceeding the RRSP contribution ceiling. Funds can be withdrawn at any time without limit.


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