Group Membership
These plans are established by unions, and employer and employee contributions are determined through collective agreements.
CAPITAL ACCUMULATION PLANS
- The goal of these group retirement plans is to accumulate capital in each member’s account so as to provide them with retirement benefits
- Retirement income levels depend on the importance of accumulated capital. Accrued capital is determined by employee and employer contributions, withdrawals made during working years (when allowed), and financial returns obtained
- Employee and employer contributions are usually not subject to payroll taxes and accruing investment returns are tax-sheltered
- The conditions associated with these plans, such as employee and employer contribution levels, are established through collective agreements
- Each plan member chooses which investment vehicle or vehicles they wish to allocate their contributions or accrued savings to
Simplified Pension Plan (SPP)
Employer Contribution
- Minimum contribution of 1 percent of salary
- Locked-in until retirement
- Compared to group RRSP, allows employer contribution to be increased by more or less 15 percent without incurring extra cost
- Immediate vesting of employer contributions
Employee Contribution
- No minimum contribution
- Mandatory contributions fully, partially or non locked-in, according to agreement between parties
- Voluntary contributions not locked-in
- Non locked-in contributions eligible for Home Buyers’ Plan (HBP) and Lifelong Learning Plan (LLP)
Upon Retirement
- Retirement possible from age 55
- Transfer of locked-in portion of accrued capital to LIF and/or life annuity
Eligibility
- All eligible members of CSN labour unions whose collective agreements cover the retirement plan
Registered Retirement Savings Plan (RRSP)
Employer Contribution
- Employer contribution as a negotiated pay supplement
- Contributions subject to fringe benefits: QPP, CSST, RQAP, FSSQ, UIC, etc. (surcharge of ± 15 percent)
- Immediate vesting of employer contributions
Employee Contribution
- Mandatory contributions and voluntary contributions
- Contributions subject to QPP, CSST, RQAP and UIC (surcharge of ± 7 percent)
- Locking-in of mandatory contributions if group decides to do so
- Non locking-in of voluntary contributions and of sums transferred from other RRSPs
- Non locked-in contributions eligible for Home Buyers’ Plan (HBP) and Lifelong Learning Plan (LLP)
Upon Retirement
- Transfer of accrued capital to RRIF and/or life annuity
Eligibility
- All eligible members of CSN labour unions whose collective agreements establish the plan as their retirement plan
Deferred Profit-Sharing Plan (DPSP)
Employer Contribution
- No minimum
- Paid out of enterprise profits
- Non locked-in
- Employer avoids paying fringe benefits on contributions made to the plan
Employee Contribution
- No employee contribution possible; must be combined with a group RRSP to accept employee contributions
- Vesting of employer contributions: maximum delay of 2 years membership in plan
Upon Retirement
- Transfer of accrued capital to RIFF and/or life annuity
Eligibility
- All eligible members of CSN labour unions whose collective agreements establish the plan as their retirement plan
Multi-Employer Pension Plan (FEDERAL MEPP)
Employer Contribution
- Minimum contribution of 1 percent of salary
- Locked-in until retirement
- Compared to group RRSP, allows employer contribution to be increased by more or less 15 percent without incurring extra cost
- Immediate vesting of employer contributions
Employee Contribution
- No minimum contribution
- Locked-in until retirement
- Voluntary contributions not locked-in
Upon Retirement
- Retirement possible from age 55
- Transfer of accrued capital to LIF and/or life annuity
Eligibility
- All eligible members of CSN labour unions whose collective agreements cover the retirement plan