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 |
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- 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
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Contributions
Employer | Employee |
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- Must equal at least 1% of payroll for participating employees
- Locked in
| - Payroll contributions locked in
- Additional voluntary contributions not locked in
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Details
Administration | Investments |
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- 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)
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Note
This text is for information purposes only. Refer to the policy for all conditions, exclusions and restrictions.