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Advantages |
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Plan operates as true retirement plan.
Funds must be used for retirement purposes. |
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Federal & Provincial legislation protects
employee's pension assets from creditors. |
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Non-vested amounts are forfeited by
terminated employees to create an employer credit which can be used to
reduce future contribution costs. |
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"Lock-in" legislation ensures to employer
that employees will have income during their retirement. It also
allows terminated members to manage assets, but does not allow for cash
withdrawal prior to retirement and ensures minimum annual withdrawal limits
are followed during retirement. |
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Employees may make additional voluntary
contributions and can withdraw these anytime with no locking-in provisions
applied. |
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Employer contribution will not increase
employee T4 income and will not generate additional payroll taxes. |
