With a DCPP, you’ll help your employees build up their retirement savings by making employer contributions. Your employees can also contribute a percentage of their salary.
Advantages
| For employers | For employees |
|---|
- Promotes employee engagement and loyalty
- A great addition to employee benefit package
| - Provides retirement income in addition to government benefits
- Tax advantage: employer contributions don’t count as salary
- Investment income grows tax-free
|
Contributions
| Employer | Employee |
|---|
- Must equal at least 1% of payroll for participating employees
- Locked in
| - Payroll contributions locked in
- Additional voluntary contributions not locked in
|
Details
| Administration | Investments |
|---|
- Plan needs to be registered with province, federal government and Canada Revenue Agency
- Subject to regulatory fees
- Plan administered in most provinces by board of trustees (in Quebec, can be administered by retirement committee or employer)
- Annual meetings required in Quebec only
| - Either employees or administrator responsible for investment choices
- In most provinces, investment policy required (not always in Quebec)
|
Note
This text is for information purposes only. Refer to the policy for all conditions, exclusions and restrictions.