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
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
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
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