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Employee Benefit Plans
Employee
Assistance Program
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Group Registered Retirement Savings Plan (GRSP)
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Advantages |
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Not subject to pension legislation,
therefore employer can tailor plan to suit the company's needs. |
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No legal requirements for eligibility
provisions and there is contribution flexibility for both the employer and
employee. |
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Plan proceeds can be paid to member in
various forms and annuities. |
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Spousal accounts are available to assist
couples in their retirement on a more tax efficient basis. |
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"In-service" withdrawal of required
employee contributions can either be unrestricted, restricted to certain
circumstances or not permitted at all. |
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Employers have complete flexibility as to
when they remit contributions. |
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No Plan Sponsor government reporting |
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Disadvantages |
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Employer cannot be sure funds will be used
for retirement and may sometimes find an employee(s) using these funds to
start a competing business. |
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Without proper provisions in place, these
funds may be liquidated while continuing in employment. |
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All company contributions vest with the
employee, 100% immediately on deposit. |
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Employer contributions must be included in
employee's T4 income, which generates additional payroll tax. |
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